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Australia Commits A$3.9 Billion to Launch Nuclear-Submarine Shipyard at Osborne

The announcement follows a U.S. review that endorsed continued AUKUS implementation.

Virginia-class fast attack submarine USS Minnesota (SSN-783) is seen off the coast of Western Australia, Australia March 16, 2025. COLIN MURTY/Pool via REUTERS
Australian Prime Minister Anthony Albanese speaks during the 5th ASEAN-Australia Summit as part of the 47th ASEAN Leaders' Summit, in Kuala Lumpur, Malaysia, October 28, 2025. REUTERS/Chalinee Thirasupa/Pool
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Overview

  • Officials cast the funding as a down payment toward a shipyard projected to cost about A$30 billion over coming decades.
  • Work is progressing on key elements including A$2 billion in enabling works, a A$5 billion fabrication hall and a A$500 million Skills and Training Academy, with completion targeted for 2040.
  • Government-owned Australian Naval Infrastructure is developing the site where ASC and BAE Systems plan to build at least eight SSN‑AUKUS submarines.
  • Projections include nearly 10,000 jobs in design and construction, up to 1,000 apprentices graduating annually, and about 5,500 roles at peak submarine production.
  • The delivery path remains phased: U.S.-commanded Virginia-class submarines are set to operate from Australia from 2027, several Virginias are planned for sale around 2030, and UK‑Australia SSN‑AUKUS builds will follow, with boats nuclear-powered but not nuclear-armed.