Australia is poised to acquire nuclear-powered submarines, specifically three to five Virginia-class vessels from the US, followed by eight newly designed SSN-AUKUS submarines. This purchase stems from a defence agreement known as AUKUS between Australia, the US, and the UK. However, worries had arisen that the Pentagon might jeopardise this agreement, especially after a review was initiated in June under Elbridge Colby, a known sceptic of AUKUS and former undersecretary for war policy under Donald Trump.
Despite these concerns, a recent report from Nikkei Asia indicates that the Pentagon’s review has cleared the way for the deal to proceed, assuring that “AUKUS is safe.” Confirmation has been provided that there will be no alterations to the submarine delivery timetable. This is significant due to ongoing challenges faced by the US in meeting its own military requirements, which raises questions about its capacity to supply Australia with the submarines.
Colby had expressed doubts regarding Australia’s commitment to deploying the Virginia-class submarines in potential conflict scenarios, particularly in the event of a war with China. Nonetheless, reports suggest that despite possible industrial delays that could affect the timeline, the Pentagon is committed to delivering the submarines to Australia.
Defence Minister Richard Marles has remained optimistic about AUKUS, stating that while the review is still in progress, he is confident about the deal’s continuation. He noted that the US has been cooperative throughout the review process and reiterated the transparency of communication between the nations involved, asserting that AUKUS remains a definite commitment.
Additionally, it has been indicated that Colby’s review is expected to be concluded before Prime Minister Anthony Albanese’s visit to the White House at the end of October. This contract is part of a broader collaboration, which King Charles of the UK has acknowledged as a crucial partnership amidst current global tensions. He emphasised the historic defence relationship shared by the countries involved and the importance of the AUKUS submarine initiative in fostering innovative collaboration.
The financial implications for Australia are considerable, with the defence deal estimated to amount to $368 billion over three decades. Australia has already poured $1.5 billion into the US submarine industry, with plans for an additional $1.5 billion investment before the year’s close. This substantial financial commitment underscores Canberra’s intent to strengthen its defence capabilities through the AUKUS agreement and solidify its strategic ties with key allies.