September 17, 2025

Australia commits $8 billion to shipbuilding facility supporting AUKUS

By Staff Reports

The Australian government Sunday committed to providing $8 billion (U.S.) to a shipbuilder project in Western Australia with aims to maintain and build conventionally-armed nuclear-powered submarines (SSNs) under the AUKUS deal with the U.S. and the United Kingdom.

The Australian government specifically called this $8 billion investment a “significant down payment” to bolster the shipbuilding capabilities of the Henderson Defense Precinct in Western Australia. The Defense Ministry said early independent planning and advice indicated the precinct requires upward of $16.7 billion over the next decade to become a major part of the planned nuclear-powered attack submarine shipbuilding program.

While Australia plans to start building and delivering an in-country built SSN-AUKUS submarine by the early 2040s as part of the trilateral AUKUS agreement with the U.S. and the U.K., the U.S. plans to first sell three to five Virginia-class submarines to Australia in the 2030s.

During a Sept. 14 press conference, Australian Prime Minister Anthony Albanese claimed the new $8 billion investment raises his government’s defense investments over the next decade to $47 billion.

“When complete, this precinct will deliver continuous naval shipbuilding, and AUKUS here in [Western Australia state] and today’s investment is another way we’re delivering record defense funding to bolster Australia’s capabilities,” Albanese said.

The government added this latest chunk of funding is aimed, in part, at giving industry certainty on partnerships for the construction of infrastructure and facilities as well as kick-starting early work while more detailed planning and design work is being finalized.

Richard Marles, Deputy Prime Minister and Minister of Defense, added this funding will provide “for the security” of the Henderson Defense Precinct, which he called “the lay down area to do our surface fleet.”

Exchange Monitor affiliate Defense Daily first published a version of this article.