Sydney: Australia has unveiled a landmark plan to pour A$12 billion (around US$8 billion) into a nuclear submarine shipyard in Western Australia, marking one of the country’s most ambitious defense infrastructure projects in recent history. The announcement underscores Canberra’s deepening strategic alignment with the United States and the United Kingdom under the AUKUS security pact, and signals its intent to boost its maritime strength in the Indo-Pacific.
The investment focuses on transforming the Henderson shipyard near Perth into a state-of-the-art facility capable of maintaining and supporting nuclear-powered submarines. The precinct will also be tasked with producing advanced landing craft and general-purpose frigates, making it a comprehensive hub for Australia’s naval future. The announcement builds on a prior A$127 million upgrade at Henderson last year, which served as a stepping stone for this larger commitment.
Over the next two decades, the project is expected to evolve into a core asset for Australia’s naval readiness, ensuring the country is equipped to handle the complexities of operating nuclear-powered vessels technologically advanced submarines with greater endurance, speed, and deterrence capabilities.
The government projects that the initiative will generate around 10,000 jobs across Western Australia, spanning construction, operations, and support services. Beyond defense, the development is expected to invigorate supply chains, spark technological innovations, and provide long-term employment opportunities.
Defense Minister Richard Marles stressed that the project is not only about security but also about strengthening Australia’s shipbuilding and sustainment industry. “This investment is critical to our future naval capability and to the thousands of Australians whose skills will keep this industry strong,” he said.
The shipyard announcement comes as part of the broader AUKUS pact, signed in 2021, which aims to provide Australia with nuclear-powered submarines for the first time. Under the agreement, Canberra is slated to initially acquire US-made Virginia-class submarines before co-developing a next-generation “AUKUS-class” submarine with Britain.
The A$12 billion commitment is therefore more than just infrastructure it is a signal of Australia’s seriousness in embracing its new role within AUKUS and its determination to position itself as a strong maritime power. The move reflects Canberra’s concerns over growing strategic competition in the Indo-Pacific, particularly China’s expanding naval influence.
While the announcement has been welcomed by defence planners, it comes with significant challenges. Developing and maintaining nuclear submarine infrastructure requires strict nuclear safety standards, environmental safeguards, and advanced workforce training. The long timeline spanning up to 20 years means consistent political will, budget discipline, and public support will be essential to bring the project to fruition.
Critics have also raised concerns about costs, delays, and the broader regional response. Australia’s pursuit of nuclear-powered submarines has already drawn scrutiny from some neighbours who fear an escalation in regional arms competition.
For now, the investment cements Australia’s place in the AUKUS framework and lays the groundwork for a historic transformation of its naval capacity. If executed effectively, the Henderson shipyard could become one of the most advanced maritime facilities in the region, boosting both Australia’s security and industrial strength.
As Defense Minister Marles put it, this is “an investment not just in ships and submarines, but in the security, prosperity, and resilience of Australia for generations to come.”