Australia announces extra US$3.2 billion for nuclear submarine project

Australia said on 24 July that it would add Aus$4.6 billion, equal to US$3.2 billion, to work on its nuclear-powered submarine programme under the AUKUS defence pact with the United States and Britain.

Defence Minister Richard Marles said the money would go to a shipyard at Osborne in South Australia. He said the investment showed that AUKUS was "on track and happening now" and was another step toward building Australia's ability to build, operate, maintain and sustain its future submarine fleet.

Under the 2021 AUKUS deal, Australia is due to receive three nuclear-powered submarines from the United States. Australia and Britain are then expected to build a new class of submarine in the 2040s.

The project is Australia's most expensive defence programme and is expected to cost Canberra as much as US$250 billion over 30 years. It has faced scrutiny over whether slow submarine production rates in the United States and Britain could leave Australia without the vessels it needs.

Australia had previously expected to receive two used submarines and one new submarine from the United States. It was announced in May that all three would instead be in-service vessels from US Navy stock. Australia has described that arrangement as more cost-effective.