Australia Invests $12bn in Shipyard for Aukus Nuclear Submarine Programme
Australia Invests $12bn in Shipyard for Aukus Nuclear Submarine Programme

The Australian government has announced a $12bn downpayment on the Henderson defence precinct in Western Australia to prepare it for future nuclear-powered submarines under the Aukus agreement. The facility, which will cost $25bn over a decade, will be used to build surface vessels and maintain submarines, including those to be delivered as part of the trilateral pact with the UK and US.

The $368bn Aukus agreement involves Australia purchasing at least three Virginia-class submarines from the US and building at least three new ones in South Australia. While the Pentagon is reviewing the arrangement amid concerns, US Secretary of State Marco Rubio has reportedly assured Defence Minister Richard Marles that the deal will proceed. Marles described the review as an opportunity to improve efficiency and expressed confidence in the programme's progress.

Prime Minister Anthony Albanese said the investment would create more than 10,000 local jobs and provide certainty for the industry. The Henderson precinct will also support the construction of landing craft and, pending consolidation, a domestic share of a new frigate fleet. Australia is negotiating a $10bn deal with Japan to buy Mogami-class frigates, with up to eight built at Henderson.

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The second pillar of Aukus, focusing on advanced technology, is expected to pivot towards developing hypersonic weapons and autonomous drones, according to a defence expert. Marles also announced $1.7bn for a fleet of Ghost Shark autonomous submarines. The US is urging Australia to increase its defence spending to 3.5% of GDP.

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