Australia breaks peace record, pours billions into submarines and naval ships

Prime Minister Albanese announced that the country will spend around 12 billion Australian dollars (approximately 8 billion USD) to establish a defense center for the construction of military vessels and maintenance of nuclear submarines as part of strengthening the Aukus pact with the US and the UK.

The investments will focus on developing the Henderson defense precinct south of Perth in Western Australia, including the construction of surface vessels for the Australian Defence Force and the supporting infrastructure for their maintenance.

According to Albanese, the center will create over 10,000 new jobs and open significant opportunities for the local industry.

Deputy Prime Minister Richard Marles noted that the preliminary estimate of the total project cost reaches 25 billion Australian dollars.

Marles also stated that Australia’s current defense spending stands at 2.8% of GDP, and over recent years the government has increased defense expenditures by 70 billion Australian dollars over the past decade, marking the largest peacetime growth in the country’s history.

Details of the Aukus agreement

Under the Aukus agreement signed in 2021, Australia is cooperating with the US and the UK on the construction and outfitting of a fleet of nuclear-powered submarines, which could be operational as early as the 2030s.

The US plans to transfer up to five Virginia-class submarines, after which Australia and the UK will design and build next-generation submarines using American technology, with construction expected to be completed in the 2040s.

Deputy Prime Minister Richard Marles reported receiving positive signals from US Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth regarding the continuation of the Aukus pact even under a Trump administration. He emphasized the importance of stable relations with the US and the gradual development of Australia’s defense capabilities, especially in light of China’s growing military power in the region.

Australia is actively modernizing its defense capabilities to ensure security in Southeast Asia and to support strategic alliances with partners, with the Aukus project being a key element of these plans.

For context, India has announced plans to build its first nuclear-powered aircraft carrier as part of a 15-year defense modernization program. The new carrier is expected to replace outdated models and significantly increase the operational range and autonomy of the fleet.