Australia has committed A$12 billion (roughly US$8 billion) to build out a major nuclear submarine shipyard and supporting defence precinct in Western Australia, under the AUKUS agreement with the US and UK. The facility will be centred at the Henderson shipyard near Perth, which will be upgraded to serve as a maintenance hub for Australia’s future fleet of nuclear-powered submarines, and to build other naval vessels such as new landing craft and general-purpose frigates.
Defence Minister Richard Marles said the precinct is critical to Australia’s “shipbuilding and sustainment industry” and part of the country’s “nuclear-powered submarine pathway” under AUKUS. The initial investment includes A$127 million allocated previously for upgrades. The broader transform-and-build programme will stretch over decades, creating around 10,000 local jobs and boosting sovereign defence capacity.
The AUKUS pact, first established in 2021, envisages Australia acquiring U.S. Virginia-class submarines in the early 2030s and later jointly developing a next-generation SSN-AUKUS-class with Britain. The new facility in Henderson will support not just Australian subs, but allied subs from the US and UK as well. The government has made clear that the facility will be capable of servicing allied nuclear-powered vessels, reinforcing Australia’s alliance commitments.
Strategically, the investment reflects Australia’s response to growing tensions in the Indo-Pacific. Canberra views strengthening its submarine capabilities, infrastructure, and industrial base as key to maintaining deterrence, regional presence, and defence self-reliance amid geopolitical competition.
At the international and political level, the project comes during a review of the AUKUS deal by the U.S. administration, but Australian officials remain confident that the pact will continue.
