Adelaide to Host $30 Billion Nuclear Submarine Shipyard
The South Australian and federal governments have announced plans for a $30 billion shipyard in Adelaide. This facility will be responsible for constructing at least eight nuclear-powered submarines as part of the AUKUS security pact involving Australia, the US, and the UK.
"The new facility would be the 'most modern submarine yard in the world.'"
Funding and Construction Timeline
Prime Minister Anthony Albanese confirmed that the Commonwealth will provide a $3.9 billion initial payment towards the Osborne shipyard. The remaining funding is slated to be provided continuously until the shipyard's completion in 2040.
Work has already commenced on a $5 billion fabrication area and a $500 million Skills and Training Academy, following $2 billion in enabling works. Australian Naval Infrastructure (ANI), the federal government-owned developer, estimates future stages will include an $8 billion outfitting area and a $15 billion+ area for consolidation, testing, launching, and commissioning.
Workforce and Submarine Specifications
The state government projects that at least 4,000 workers will be involved in the design and construction of the shipyard, with an additional 5,500 workers supporting nuclear-powered submarine production at its peak.
The SSN-AUKUS submarines will be based on the design of the British Astute-class submarine. These are part of the broader $368 billion AUKUS submarine pact established in 2021, which superseded a previous agreement to build French-designed submarines in Adelaide.
Delivery Timeline and International Collaboration
Australia's plan involves acquiring three to five nuclear-powered submarines from the US starting in the early 2030s, including at least two second-hand Virginia-class submarines. Five of the eight SSN-AUKUS submarines are expected by the mid-2050s, with the final three by the 2060s.
Vice Admiral Jonathan Mead, director-general of the Australian Submarine Agency, noted that experts from the US and UK are providing advisory support for the construction. He stated that the manufacturing process at Osborne would align with the UK's shipyard practices, and the new facility would be the "most modern submarine yard in the world."
Economic Impact and Political Perspectives
Prime Minister Albanese highlighted that the construction and subsequent submarine production work would generate thousands of jobs in Adelaide for decades. He projected a $30 billion economic benefit for South Australia.
South Australian Premier Peter Malinauskas described the investment as a structurally significant contribution to the state's economy, emphasizing its scale compared to prior investments. Opposition Leader Ashton Hurn acknowledged the AUKUS deal's origin under the former Coalition federal government and expressed hope for significant involvement of South Australian businesses in the manufacturing process.