Australia Invests $12 Billion in AUKUS Submarine Hub for U.S. and Allies

Australia will invest A$12 billion to upgrade the Henderson shipyard near Perth, transforming it into the main maintenance hub for its AUKUS nuclear-powered submarine fleet. Defence Minister Richard Marles confirmed that the facility, designed under the AUKUS partnership with the United States and Britain, will also be available for U.S. submarines.

Speaking to ABC television, Marles said, “This is an AUKUS facility, so I would expect it will serve U.S. needs in the future.” The project is part of a 20-year plan that supports around 10,000 jobs while building new landing craft for the army and general-purpose frigates for the navy. An initial A$127 million investment was made last year to begin upgrades.

The AUKUS agreement, signed in 2021, is aimed at countering China’s growing influence in the Indo-Pacific region. Under the deal, Washington will sell several Virginia-class submarines to Australia, while Britain and Australia will collaborate to build a new AUKUS-class submarine. The pact is valued at hundreds of billions of dollars.

Despite a formal review by the Trump administration, bipartisan leaders in the U.S. Congress have emphasized strong support for AUKUS. In July, both Republican and Democratic heads of the House committee on strategic competition with China reaffirmed their commitment to the alliance. Australia also strengthened ties with Britain through a 50-year treaty signed the same month, underscoring long-term cooperation on submarine development.

The upgraded Henderson facility will not only enhance Australia’s submarine sustainment capabilities but also reinforce defence collaboration with the U.S. and U.K. Marles highlighted that the investment represents a critical step in preparing Australia for future security challenges while strengthening its role within the AUKUS partnership.