Australia is set to invest an initial 12 billion Australian dollars (approximately $8 billion) to modernize shipyard facilities crucial for a future fleet of nuclear-powered submarines. This significant expenditure will unfold over the next decade, primarily focused on enhancing the shipbuilding and maintenance operations within Perth’s Henderson Defence Precinct, according to Defense Minister Richard Marles.
The financial commitment follows the 2021 AUKUS pact, which Australia signed with the United Kingdom and the United States, aimed at strengthening its naval capabilities through nuclear-powered submarines. This initiative seeks to bolster Australia’s military infrastructure amid growing concerns over China’s expanding military presence in the Pacific region.
Currently, Australia lacks the necessary facilities to service nuclear-powered submarines, which has expedited the need for the upgrades. Over the next 15 years, the government aims to acquire at least three Virginia-class submarines from the United States, with a long-term goal of developing its own submarines domestically.
“Henderson is very much an AUKUS project,” Marles stated in a recent press briefing. He emphasized that this investment is not only pivotal for maintaining Australia’s future submarines but will also be beneficial to the United States and the United Kingdom, reaffirming the collaborative spirit of the AUKUS agreement.
The planned enhancements at Henderson will include the establishment of high-security dry docks specifically designed for the maintenance of nuclear-powered submarines. The facilities will also expand to accommodate the construction of landing craft and possibly Japanese Mogami-class frigates, according to the minister’s revelations.
In addition to serving Australian military needs, the shipyard is expected to facilitate maintenance for U.S. nuclear-powered submarines, further integrating defense capabilities between the allied nations. The total investment for developing the Henderson Defence Precinct could eventually rise to around 25 billion Australian dollars.
The shipyard expansion is part of a broader push for military modernization in Australia. Earlier in August, it was announced that the navy would acquire 11 Mogami-class frigates from Japan’s Mitsubishi Heavy Industries at a cost of 10 billion Australian dollars over the next decade. This initiative aims to expand Australia’s fleet of major warships from 11 to 26 within the same timeframe, with plans for domestic production of the majority in Western Australia.
Last week, the Australian government also unveiled plans for a 1.7 billion Australian dollar initiative to deploy “Ghost Shark” underwater attack drones, with impending service expected by January.
While questions surrounding the AUKUS submarine program persist—especially concerning its potential cost of up to 235 billion Australian dollars over the next 30 years—Australian officials maintain confidence in the partnership’s trajectory. U.S. President Donald Trump’s administration has initiated a review of the AUKUS pact, chiefly to ensure it aligns with an “America First” agenda. Critics have raised concerns regarding the capacity of the U.S. to provide nuclear submarines to both its own navy and Australia.
Despite these uncertainties, reports indicate that U.S. Secretary of State Marco Rubio recently provided assurances to Marles about the future of the AUKUS partnership. While opting not to elaborate on those discussions, Marles expressed a prevailing optimism regarding AUKUS’s significance for the United States.
Since May 2022, the Australian government has committed an additional 70 billion Australian dollars to defense spending over the coming decade, reinforcing its stance on enhancing national security and military readiness.
