Australia to spend $2.8 billion on new nuclear subs facility

Australia has announced the initial funding to build a new submarine construction yard in Osborne under the AUKUS security pact.

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.

Source : https://www.dw.com/en/australia-to-spend-billions-on-new-nuclear-submarines-facility/a-75976951