Published by Global Banking & Finance Review®
Posted on October 20, 2025
3 min readLast updated: January 21, 2026
The AUKUS partnership involves Australia, US, and UK collaborating on nuclear submarines to enhance defense capabilities in the Indo-Pacific.
SYDNEY (Reuters) -Australia, the United States and Britain announced in 2021 they would transfer nuclear powered submarines to Australia, and two years later detailed an ambitious pathway that would bolster U.S. efforts to counter China's naval ambitions in the Indo-Pacific.
U.S. President Donald Trump's administration is reviewing the deal struck before he returned to power, and has pressed Australia to increase defence spending.
WHY DOES AUSTRALIA WANT NUCLEAR-POWERED SUBMARINES?
Only six countries operate nuclear-powered submarines: the U.S., the UK, Russia, China, France and India. As an island continent, Australia says a submarine fleet is crucial to securing its vast coastline, protecting the shipping lanes to its north it relies on for trade and intelligence gathering.
Canberra wants to see an Australian-flagged nuclear powered submarine in the water in the early 2030s to avoid a capability gap as its existing Collins class diesel-electric fleet retires. It says nuclear-powered submarines have greater stealth and range than conventionally-powered subs.
WHAT IS THE TIMETABLE FOR AUKUS?
AUKUS is projected to span three decades, beginning with a rotating force of four U.S.-commanded Virginia-class submarines and one British submarine hosted at Western Australia's HMAS Stirling from 2027, to help train Australian crew.
The U.S. will sell three Virginia-class submarines to Australian command from 2032, before Australia and Britain build a new class of nuclear-powered submarine.
Around 50 to 80 U.S. navy personnel will arrive in 2025 at HMAS Stirling base, which is undergoing a $5 billion upgrade, to prepare for the arrival of the U.S.-commanded submarines.
In preparation for Australia operating nuclear-powered submarines, several hundred Australians are training in the U.S. nuclear navy training pipeline and nuclear submarine maintenance yard at Pearl Harbor in Hawaii.
Britain will take the first delivery of a new class of AUKUS submarine - built in Britain - in the late 2030s, an important part of the expansion of the Royal Navy fleet, with an Australian-built submarine due in the early 2040s.
Australia, the United States and Britain removed significant barriers on defence trade between their countries in 2024.
HOW MUCH IS AUSTRALIA SPENDING UNDER AUKUS?
Australia's biggest-ever defence project, Canberra is committing A$368 billion($239.02 billion) over three decades to AUKUS, including billions of dollars of investment in British and U.S. production bases.
In 2025, Australia will pay the United States $2 billion of the $3 billion it pledged to assist with improving U.S. submarine shipyards, to help speed up production rates.
WHAT IS THE U.S. CONCERN?
Whether the United States can boost submarine production to meet the U.S. Navy's own targets is key to whether Australia can buy the Virginia-class submarines, Pentagon officials have previously said.
The Pentagon's top policy adviser Elbridge Colby last year said that submarines were a scarce, critical commodity, and U.S. industry could not produce enough to meet American demand.
Placing U.S.-commanded Virginia submarines in Western Australia from 2027 is seen as highly favourable to the U.S. Navy, however. This positions the U.S. submarine fleet closer to the strategic Indian Ocean than its forward operating base of Guam.
ANYTHING ELSE?
A "Pillar Two" of the pact commits members to jointly developing quantum computing, undersea, hypersonic, artificial intelligence and cyber technology.
($1 = 1.5396 Australian dollars)
(Reporting by Kirsty Needham; Editing by Kate Mayberry)
Nuclear-powered submarines are submarines that use nuclear reactors for propulsion, allowing them to operate underwater for extended periods without surfacing.
Technology transfer is the process of sharing or disseminating technology from one organization or country to another, often to enhance capabilities or foster innovation.
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