Australia to Spend $8 Bln on Nuclear Submarine Shipyard Upgrades

Australia has announced plans to invest 12 billion Australian dollars ($8 billion USD) to modernize and expand its shipyard facilities in preparation for its future fleet of nuclear-powered submarines.

Defense Minister Richard Marles described the investment as a “very significant” step, with the funds to be allocated over the next decade to enhance the Henderson Defense Precinct in Perth, Western Australia.

The government began allocating funds to Henderson following the signing of the AUKUS security pact with the United States and the United Kingdom, which includes the purchase of nuclear-powered submarines.

Under the agreement, Australia intends to acquire three US-built Virginia-class nuclear submarines within 15 years, while also developing the infrastructure needed to eventually produce its own nuclear-powered vessels domestically.

Marles confirmed that the upgrades will include the construction of secure dry docks for submarine maintenance as well as new facilities to manufacture amphibious ships and Japanese-designed Mogami-class frigates.

The defense minister also noted that the overall cost of transforming the Henderson shipyard could ultimately rise to as much as 25 billion Australian dollars ($16.5 billion USD).