SYDNEY, Feb 15,  (V7N) - Australia unveiled AU$3.9 billion (US$2.8 billion) in spending Sunday to begin construction of a new facility at Osborne, near Adelaide, that will build nuclear-powered submarines under the AUKUS security pact with Britain and the United States.

The AUKUS programme, launched in 2021, aims to equip Australia with conventionally armed, nuclear-powered submarines and foster cooperation on advanced warfare technologies. The submarine fleet, expected to begin arriving in 2032, forms the backbone of Canberra’s long-range strike strategy in the Pacific, particularly in response to China’s growing influence.

Defence Minister Richard Marles said the Osborne facility would be “at the heart” of Australia’s sovereign capability to build nuclear submarines. Long-term investment in the yard is projected at AU$30 billion. Prime Minister Anthony Albanese added: “We are accelerating AUKUS opportunities to secure Australia’s future defence capability and create lasting prosperity and jobs for the state.”

The overall programme could cost up to US$235 billion over 30 years, including technology transfers enabling Australia to build its own vessels. In September, Canberra also announced US$8 billion over a decade to transform shipbuilding facilities in Perth for future nuclear submarine maintenance.

Australia’s pivot to AUKUS followed the cancellation of a multi-billion-dollar deal with France in 2021 to purchase diesel-powered submarines, sparking a diplomatic rift. The pact was briefly in doubt last year when Washington reviewed its alignment with President Donald Trump’s “America First” agenda, but in December the Pentagon confirmed Trump had ordered the programme to proceed “full steam ahead.”

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