The Australian government has pledged an initial AU$12 billion ($8 billion) to modernize shipyard infrastructure in Perth, supporting its future fleet of nuclear-powered submarines. The investment will be phased in over ten years to redevelop the Henderson Defense Precinct, Defense Minister officials said on Sunday.
The shipyard upgrade stems from the AUKUS security pact, signed with the US and UK in 2021, under which Australia will acquire at least three Virginia-class submarines before moving toward domestic production. As Australia currently lacks facilities for nuclear-powered submarines, the project is seen as critical to realizing its naval ambitions.
The expansion is part of a sweeping defense restructure, aimed at improving long-range strike capabilities amid regional tensions and China’s growing military presence.
Canberra is also pursuing other naval modernization programs. In August, it announced plans to add 11 Mogami-class frigates from Japan in a AU$10 billion deal, expanding the fleet of major warships from 11 to 26 over the next decade. The first three frigates will be built in Japan, with local construction to follow.
Last week, officials revealed plans to field a AU$1.7 billion fleet of “Ghost Shark” underwater attack drones, with the first units expected in service by January.
However, the AUKUS submarine initiative—the centerpiece of Australia’s defense strategy—has drawn scrutiny, with government estimates placing the total cost at up to AU$235 billion over 30 years.
