Australia Invests Billions of Dollars in Shipyard for Nuclear-Powered Submarines

The government in Canberra has taken the first, milestone step toward building its own fleet of nuclear-powered vessels. Prime Minister Anthony Albanese announced on Sunday, February 15, 2026, the allocation of nearly 2.7 billion US dollars (3.9 billion AUD) for the development of a shipyard in Osborne, near Adelaide. This is a so-called advance payment for a massive project that will consume at least 30 billion dollars over the coming decades. The entire undertaking is part of the AUKUS pact, which is intended as a response to China's growing influence in the region. The decision to establish the AUKUS pact in 2021 triggered an unprecedented diplomatic crisis between Paris and Canberra after Australia unilaterally terminated a contract with the French Naval Group for the supply of conventional Barracuda-class submarines. The investment in Osborne is crucial for delivering nuclear-powered submarines to Australia, equipped exclusively with conventional weapons. Prime Minister Albanese emphasized that the shipyard's development is not only a matter of defense but also a boost for the economy and modern technologies. The program envisions that Australia will first acquire United States Virginia-class units, then transition to building its own next-generation submarines in cooperation with partners from London. This process will take over a decade, but work has already begun on preparing the site and infrastructure necessary for servicing such advanced combat systems. „The investment in the Osborne submarine-building shipyard is crucial for delivering nuclear-powered submarines to Australia, armed with conventional weapons.” — Anthony Albanese Despite the enormous costs, the government maintains that the project is essential due to the changing geopolitical situation. The investment faces criticism from some opposition members and concerns about the final cost balance, which may exceed initial budget assumptions. Nevertheless, Sunday's announcement lays the foundation for the most ambitious armament program in the country's history, definitively withdrawing Australia from plans to cooperate with France in this sector. Initial amount: 3.9, Total estimated cost: 30 3.9 billion AUD — is the initial advance payment for the shipyard construction Liberal media emphasize the necessity of modernizing the fleet in the face of threats from Beijing and the economic benefits for South Australia. | Conservative media focus on the enormous costs to taxpayers and the risk of delays in delivering key defense units.