Australia Unveils $30 Billion Plan for Nuclear Submarine Industry

WASHINGTON — The Australian government has released a new strategy calling for $30 billion AUD ($19 billion USD) to develop its domestic industrial base to support future nuclear-powered submarines under the AUKUS pact.

Building and sustaining conventionally armed, nuclear-powered submarines is one of Australia’s most significant industrial undertakings. The strategy aims to rapidly enhance military and industrial capabilities within an ambitious timeframe set in March 2023.

The government has identified four key challenges: demand uncertainty, investment attraction, regulatory complexity, and workforce shortages. To address these, it plans to create 20,000 jobs over 30 years as part of a nationwide effort. Collaboration with trusted U.K. and U.S. partners will be essential throughout the program.

A pilot initiative led by American submarine builder HII will integrate Australian companies into the U.S. Virginia-class submarine supply chain. HII Australia has been awarded an initial $9.6 million contract for the two-year program, with potential extensions. The project is a joint effort with H&B Defence, a partnership between HII and U.K. firm Babcock.

HII President and CEO Chris Kastner emphasized the importance of building a resilient, globally integrated supply chain. “We welcome Australian partners to help develop this critical capability and ensure AUKUS’s long-term success,” he said.

Beyond developing the new SSN-AUKUS submarine, Australia is also set to acquire and operate three to five Virginia-class submarines as part of the agreement.