Australia To Invest An Extra $ 4.6 Billion In Osborne Shipyard Expansion For AUKUS Submarines

Australia is investing an additional $ 4.6 billion to expand its Osborne nuclear-powered submarine shipyard in South Australia.

Through this gesture, it is reaffirming its commitment to the trilateral AUKUS pact with the U.S and Britain to support a stable Indo-Pacific.

The decision on the new funding was announced after Australian P.M Anthony Albanese got assurance from Britain’s new P.M regarding the long-term defence agreement.

The new investment builds upon the $ 3.9 billion that was previously committed to Osborne, which turned the site into one of Australia’s biggest industrial undertakings.

Once it is completed, the expanded and modernised shipyard will be ten times the size of the current facility and will have 50 new buildings in the premises.

According to South Australian Premier Peter Malinauskas and Defence Minister Richard Marles, the funding will support critical infrastructure, sovereign manufacturing capabilities, and workforce training, doubling the number of workers from 5000 to 10,000.

Under the revised AUKUS deal, Australia will acquire 3 nuclear-powered submarines from the U.S. Navy, a shift announced in May since it would be more cost-effective.

Australia will also jointly develop a new submarine class with the U.K which will enter service in the 2040s, according to sources.

Defence leaders such as the Industry Minister Pat Conroy pushed back against critics questioning the timeline.

He said that though the project spans decades, it is moving forward despite the estimated price reaching up to almost $ 255 billion billion over the next few decades.

The deal continues to face political and public scrutiny as critics question the slow production speed at the shipyards in the U.S and the U.K which could delay the delivery of the submarines even further.

Apart from submarine acquisition, the project also focuses on joint development of AI technology for defence purposes, cyber systems, hypersonic weapons and also quantum tech.

The countries have decided to pay special attention to payloads for uncrewed undersea vehicles, with initial deliveries planned around 2027.