According to Reuters
Australia officially confirmed the allocation of A$3.9 billion for the construction of a shipyard in Osborne, a suburb of Adelaide, which will become a key element of the AUKUS defense pact between the United States and the United Kingdom and will ensure the supply of nuclear-powered submarines.
According to the announcement, the AUKUS program, launched in 2021, is Australia’s most expensive defense investment in history. Under it, from 2027 Virginia-class submarines under the US flag will be based on Australian territory, and from 2030 a portion of these vessels will transfer to the Australian fleet. Britain and Australia will also jointly develop a new class of nuclear-powered submarines.
Australian Prime Minister Anthony Albanese called the A$3.9 billion the initial contribution toward establishing the Osborne shipyard.
“Investing in the Osborne submarine construction plant is crucial for supplying Australia with nuclear-powered submarines armed with conventional weapons,” the government statement said.
According to the head of government, the total cost of construction is estimated at about A$30 billion and could stretch over the coming decades.
Osborne will be the site where Australia’s ASC and Britain’s BAE Systems, together, will assemble the submarine fleet as the core component of the AUKUS pact. A significant portion of maintenance of the existing Collins-class submarine fleet will also be carried out at the shipyard as production ramps up.
Under the agreements between the countries, there was previously a commitment to strengthen cooperation in the construction of nuclear submarines for the next five decades.
Outlook for regional defense
The new production center will open up opportunities for long-term support and modernization of the submarine fleet, which is a key element of strategic stability in the region and strengthens the defense capabilities of partner countries.
Investing in the Osborne submarine construction plant is crucial for supplying Australia with nuclear-powered submarines armed with conventional weapons
– The Australian Government