Australia will invest approximately 4 trillion won as initial funding to build a shipyard for nuclear-powered submarines under the AUKUS security alliance with the United States and United Kingdom.
AFP and Reuters reported on the 16th (local time) that the Australian government announced plans to invest A$3.9 billion (approximately 3.99 trillion won) as initial funding to construct nuclear submarine building facilities in Osborne, near Adelaide in the southern state of South Australia.
The total long-term construction cost for the shipyard is expected to reach A$30 billion (approximately 30.7 trillion won), the reports added.
Under the AUKUS agreement, Australian state-owned defense company ASC and British defense contractor BAE Systems will jointly build AUKUS-class nuclear submarines for the Australian military at the shipyard.
Australian Prime Minister Anthony Albanese said in a statement, "We are accelerating AUKUS opportunities to secure Australia's future defense capabilities and ensure continued prosperity and job creation," adding that "investment in the Osborne shipyard is crucial to building Australia's conventionally armed nuclear submarines."
Under the AUKUS agreement—Australia's largest defense investment in history—U.S. Virginia-class nuclear submarines will be deployed to Australia starting in 2027. From around 2030, Australia will acquire three Virginia-class submarines from the United States, while the UK and Australia will jointly develop and build new AUKUS-class nuclear submarines.
Australia also plans to invest A$12 billion (approximately 12.3 trillion won) over the next decade to build an AUKUS nuclear submarine maintenance complex near the HMAS Stirling naval base in Perth, Western Australia, separate from the Osborne shipyard in the south.
Additionally, the U.S. Department of Defense plans to rotationally deploy up to four U.S. nuclear submarines to Stirling base under AUKUS to enhance deterrence against China. Stirling base is considered relatively safe due to its distance from mainland China while offering good access to key disputed areas such as the South China Sea and Taiwan Strait.
