Australia to Invest $8bn in Nuclear Sub Shipyard

Australia to Invest $8bn in Nuclear Sub Shipyard

Australia will invest an initial Aus$12 billion (US$8 billion) to upgrade shipyard facilities in Perth for its future fleet of nuclear-powered submarines, Defence Minister Richard Marles announced Sunday.

The decade-long investment will focus on the Henderson Defence Precinct, following the 2021 AUKUS pact with the United States and Britain, under which Australia will acquire at least three US Virginia-class submarines within 15 years and later build its own.

Marles said the project would provide secure dry docks for nuclear submarine maintenance and new facilities to construct landing craft and, eventually, Japanese Mogami-class frigates.

He described Henderson as a vital element of AUKUS and “a key step in ensuring Australia meets its strategic needs.”

The total cost of developing the precinct could rise to Aus$25 billion, he added.