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Australia to invest $8 billion in nuclear submarine shipyard
Published by Global Banking and Finance Review
Posted on September 13, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 13, 2025
2 min readLast updated: January 21, 2026
Australia commits $8 billion to a nuclear submarine shipyard in Western Australia under the AUKUS pact, enhancing defense and creating 10,000 jobs.
SYDNEY (Reuters) -Australia said on Saturday it would spend A$12 billion ($8 billion) to establish defence facilities in Western Australia to help deliver submarines under the AUKUS nuclear submarine deal.
The AUKUS pact, agreed upon by Australia, Britain and the U.S. in 2021, aims to provide Australia with nuclear-powered attack submarines from the next decade to counter China's ambitions in the Indo-Pacific region. President Donald Trump's administration is undertaking a formal review of the pact.
Defence Minister Richard Marles said the planned precinct was "critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway".
The centre-left Labor government continues "to increase defence spending to record levels to deliver the capabilities Australia needs", Marles said in a statement.
It made an initial investment of A$127 million ($84 million) last year to upgrade facilities at the Henderson shipyard near Perth, saying billions of dollars would be spent over the next 20 years to transform it into the maintenance hub for its AUKUS submarine fleet.
The precinct will also build the new landing craft for the Australian army and the new general-purpose frigates for the navy, supporting around 10,000 local jobs, the government has said.
Under AUKUS - worth hundreds of billions of dollars - Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine.
The Republican and Democratic heads of a U.S. congressional committee for strategic competition with China in July stressed their strong support for AUKUS, amid the review of the deal by Elbridge Colby, a top Pentagon policy official and public critic of the pact.
Australia, which the same month signed a treaty with Britain to bolster cooperation over the next 50 years on AUKUS, has maintained it is confident the pact will proceed.
($1 = 1.5044 Australian dollars)
(Reporting by Sam McKeith in Sydney; Editing by William Mallard)
Nuclear submarines are submarines powered by nuclear reactors, allowing them to operate underwater for extended periods without surfacing, making them a strategic asset for naval forces.
Local employment refers to job opportunities available within a specific community or region, often influenced by local industries and investments.
Shipbuilding is the construction of ships and other floating vessels, involving various processes including design, engineering, and assembly.
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