Australia to spend $2.8 billion on new nuclear subs facility
Deutsche Welle
February 15, 2026
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Australia has allocated $2.8 billion to construct a new submarine construction yard in Osborne, South Australia, as part of the AUKUS security agreement with the United States and the United Kingdom. This funding marks the initial investment for a facility designed to build nuclear-powered submarines, which are conventionally armed but capable of long-distance travel due to their nuclear propulsion. Prime Minister Anthony Albanese described the $2.8 billion as a "down payment" on the project, emphasizing its importance for Australia's defense capabilities.
The AUKUS pact, announced in 2021, represents Australia's largest-ever defense investment and aims to counter China's growing influence in the Indo-Pacific region. Under the agreement, Britain and the U.S. will provide nuclear-powered submarines to Australia starting in the next decade. The deal also includes a plan for Australia to develop its own nuclear submarine technology, with the eventual goal of building a new class of AUKUS nuclear-powered submarines.
The submarine construction yard at Osborne is expected to create nearly 10,000 jobs during the design and construction phases, as well as provide training opportunities through an on-site facility that will accommodate up to 1,000 apprentices annually. This project aligns with Australia's broader defense strategy, which includes a $8 billion investment to upgrade shipyard facilities in Perth for maintaining nuclear-powered submarines.
The initiative underscores Australia's commitment to enhancing its military capabilities and reducing dependence on foreign powers for critical defense technology. By fostering collaboration under the AUKUS framework, Australia aims to establish sovereign capability to produce advanced submarines, bolstering regional security and strategic stability in the Indo-Pacific.
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Originally published on Deutsche Welle on 2/15/2026