Australia’s government has pledged A$3.9 billion (US$2.75 billion) towards constructing a shipyard to produce nuclear submarines under the AUKUS pact.
The shipyard will be built in Osborne, a western suburb of Adelaide. Construction will cost $30 billion in total, which will be invested in the project until its full completion in 2040.
“Here in this submarine construction yard, we'll see almost 10,000 jobs created to design and build the yard and to build nuclear-powered submarines in South Australia. Today we're announcing that my Government will contribute as a down payment $3.9 billion for this project, making an enormous difference,” said Prime Minister Anthony Albanese yesterday
“Importantly, when this shipyard is constructed and when it's finished, it will be the only shipyard in the Southern Hemisphere capable of constructing nuclear-powered submarines,” said Minister for Defence Industry Pat Conroy.
The shipyard will be developed by a government-owned company, Australian Naval Infrastructure.
The facility will also include an apprentice training centre, with 1,000 apprentices expected to graduate each year. The training academy and a fabrication area have already begun construction.
Under the AUKUS pact, United States Virginia-class submarines will be based in Australia from 2027, and the U.S. will sell three to five nuclear submarines to Australia from the early 2030s. Australia will then begin constructing nuclear submarines to be delivered from the 2040s.
The U.S. Department of Defense completed a review of the AUKUS deal in December. Both Australian and U.S. officials have said the U.S. remains committed to the pact and downplayed the possibility of significant changes, though details have not been released.
The AUKUS pact, announced in 2021, is set to cost Australia between $268 billion and $368 billion across the next three decades.
