Australia will spend A$12 billion ($8 billion) to expand the Henderson shipyard near Perth into a maintenance hub for nuclear-powered submarines under the AUKUS pact.
The investment, announced by Prime Minister Anthony Albanese, is part of a 20-year plan to develop Henderson into a defense precinct. It will include high-security dry docks for nuclear submarines, shipbuilding capacity for army landing craft, and new general-purpose frigates for the navy.
Albanese called the project a long-term investment in national security. “This world-class precinct will create more than 10,000 local jobs and strong opportunities for local industry,” he said.
“There’s no greater honour than serving our country in our nation’s uniform and my government is dedicated to investing in the defence capabilities that our nation requires to keep Australians safe,” he added.
Australian Defense Minister Richard Marles said the upgrades would allow the U.S. Navy to carry out submarine maintenance in Western Australia.
The AUKUS agreement, established in 2021 by Australia, the United States, and the United Kingdom, aims to provide Australia with nuclear-powered submarines by early 2030s. Initially, Washington will transfer several Virginia-class submarines to Australia, before Canberra and London jointly develop and build a new AUKUS-class submarine.
Ahead of that, up to four U.S. Virginia-class and one U.K. Astute-class submarine will rotate through HMAS Stirling, south of Perth, from 2027 under Submarine Rotational Force-West. More than 1,000 American personnel are expected to be based there.
The funding announcement comes as the Trump administration reviews the pact, led by Pentagon official Elbridge Colby. U.S. officials have also pressed Australia to increase defense spending closer to 3.5% of GDP from the current 2.2%.
Marles said his recent meetings in Washington, including with Secretary of State Marco Rubio, left him confident the agreement will proceed. “There was positive sentiment about how we’re moving forward,” he said.
Albanese will visit the U.S. next week, where he is expected to discuss the AUKUS agreement with American officials.
