Australia to spend $2.8 billion on new nuclear subs facility
February 15, 2026
Australia on Sunday earmarked AU$3.9 billion (US$2.8 billion, €2.3 billion) for the construction of a shipyard that would help deliver nuclear submarines as part of the AUKUS security pact with the United Kingdom and the United States.
Australian Prime Minister Anthony Albanese described the amount as a "down payment" on the facility in Osborne, near the southern city of Adelaide
"Investing in the submarine construction yard at Osborne is critical to delivering Australia's conventionally-armed, nuclear-powered submarines," Albanese said in a statement.
An estimated AU$30 billion is expected to be spent on the facility in the long term, according to official projections.
Australia's AUKUS ambitions
The tripartite AUKUS deal was announced in 2021 and is Australia's largest-ever defense investment.
The pact is believed to be aimed at tackling China's growing influence in the Indo-Pacific region.
It will see Britain and the US providing Canberra with nuclear-powered submarines from the next decade.
From 2027, US-commanded Virginia-class submarines will be based in Australia, while several Virginia submarines will be sold to Canberra from around 2030.
The defense deal, which is worth hundreds of billions of dollars, will see Britain and Australia building a new class of AUKUS nuclear-powered submarine.
It also includes the technology for Australia to build its own vessels in the future.
Project to create thousands of jobs
Australian Defense Minister Richard Marles said the facility in Osborne would be at the centre of that goal.
"The transformation underway at Osborne shows Australia is on track to deliver the sovereign capability to build our nuclear-powered submarines for decades to come," he said.
According to PM Albanese, the submarine construction yard in Osborne will see almost 10,000 jobs created in design and construction and up to 1,000 apprentices per year at an onsite training facility.
In September, Australia unveiled a US$8 billion investment to upgrade facilities at a shipyard in Perth and transform it into a maintenance center for the future fleet of nuclear-powered submarines.
Edited by: Srinivas Mazumdaru