The Australian government will commit 12 billion Australian dollars ($8 billion) over ten years to upgrade the Henderson Defense Precinct in Perth, enabling it to build and service nuclear-powered submarines. This marks a major step in fulfilling the AUKUS pact signed with the United States and the United Kingdom in 2021, which will eventually equip Australia with nuclear-powered submarines.
Under the deal, Canberra expects to receive at least three U.S.-made Virginia-class submarines within the next 15 years, with plans to build additional boats domestically once the infrastructure is in place. The project not only strengthens naval capability but also underpins a broader military restructuring designed to enhance Australia’s long-range strike power in response to China’s growing influence across the Pacific.
The shipyard investment is one of several large-scale defense modernization efforts underway. In August, Australia announced a 10-billion-Australian-dollar program to purchase 11 Mogami-class stealth frigates from Japan’s Mitsubishi Heavy Industries, aimed at expanding its fleet of warships from 11 to 26 by the mid-2030s. The first three vessels will be built in Japan, while subsequent units are planned for local construction in Western Australia.
Additionally, Canberra is diversifying its undersea warfare capabilities with the deployment of a $1.7 billion “Ghost Shark” autonomous underwater vehicle fleet, with the first drone expected in service by January. While these upgrades reflect a determined push toward self-reliance and regional deterrence, analysts have raised concerns about the immense cost of the AUKUS submarine program, projected to reach $235 billion over the next three decades.
