Described by Prime Minister Anthony Albanese as “the country’s biggest-ever investment in Australia’s defence capabilities”, details released today on the AUKUS partnership on nuclear-powered submarines explain why.
Speaking alongside US President Joe Biden and UK Prime Minister Rishi Sunak in San Diego, Mr Albanese declared AUKUS was more than just the UK and US sharing “their most advanced submarine capability”.
“It’s also about drawing and building on the expertise within our three nations so that we can achieve things greater than the sum of our parts”.
As explained in an AUKUS briefing paper, Australia’s own nuclear submarine capability will be achieved via a phased approach, beginning this year when the US plans to increase nuclear-powered submarine visits to Australian ports, with Australian sailors joining US crews for training and development. The UK will increase port visits to Australia from 2026.
(Coincidentally or not, the US Virginia-class submarine USS Asheville was visiting HMAS Stirling today).
The current year will also involve Australian military and civilian personnel embedding with the US Navy, the UK Royal Navy, and subject to any necessary arrangements, within US and UK submarine shipyards.
As early as 2027 the UK and US plan to establish a rotational presence at HMAS Stirling of one UK Astute-class submarine and up to four US Virginia-class boats, with Australian sailors joining US crews for training and development. This initiative will be known as Submarine Rotational Force-West (SRF-West).
(Mr Albanese disclosed today that Australian submariners were already undergoing nuclear power training in the US. "I’m proud to confirm that they are all in the top 30 per cent of their class," he noted).
Pending Congressional approval, in the early 2030s the US will sell Australia three Virginia-class submarines, with the potential to sell two more if required.
This will ensure there is no capability gap between the retirement of the RAN’s Collins-class fleet through to the early 2040s and the delivery in the 2040s of up to eight SSN-AUKUS, a trilaterally-developed submarine based on an evolution of the SSN(R) design of the UK’s Astute-class replacement.
The type will be the future attack submarine for both Australia and the UK, and will be built in both countries.
SSN-AUKUS will incorporate Virginia-class and other advanced US technology including propulsion plant systems and components, a common vertical launch system and weapons. The AUKUS partners will also develop a joint combat system building on the AN-BYG-1 combat system already deployed on Virginia and Collins-class boats.
The UK will begin construction of its first SSN-AUKUS in Barrow-in-Furness as early as the late 2020s and intends to deliver its first boat to the UK Royal Navy in the late 2030s.
Australia will start building its first SSN-AUKUS by the end of this decade – later because it does not have an existing submarine construction facility – delivering the first Australian-built boat to the RAN in the early 2040s.
Enabling works on the future submarine construction yard in Osborne costing $2 billion over the next four years will begin later this year. The facility will be almost three times larger than the yard proposed for the terminated Attack-class program.
One submarine will be built every two years from the early 2040s through to the late 2050s, with five SSN-AUKUS boats delivered to the RAN by the middle of the 2050s.
Eventually, the fleet will include eight Australian submarines built in Adelaide into the 2060s, but the federal government is leaving open the option of taking some from UK shipyards if strategic circumstances change.
Mr Sunak described the AUSUK alliance as a "powerful partnership" that would see "truly interoperable" submarines.
"The Royal Navy will operate the same submarines as the Australian Navy and we'll both share components and parts with the US Navy," he said.
"Our submarine crews will train together, patrol together and maintain their boats together.
"They will communicate using the same terminology, and the same equipment."
Meanwhile, the federal government estimates the cost of the submarine program will be between $268 billion and $368 billion over the next 30 years. Of that, $8 billion will be spent on upgrading and expanding HMAS Stirling.
In the 10 years to 2032-3 the program will cost between $50-$58 billion. Through to the 2050s, it will annually cost an average of around 0.15 per cent of GDP.
Australia will also contribute $3 billion over the next four years to US and UK production lines, with the bulk of that money going to the US.
Acquiring nuclear powered submarines (SSNs) as a whole-of-nation undertaking is expected to create around 20,000 direct jobs over the next 30 years across industry, government and Defence.
At its peak, building and sustaining SSNs in Australia will create up to 8,500 direct jobs in the industrial workforce. A further 500 direct jobs are expected to be created to sustain the SRG-West.
Although Port Kembla has firmed as the most likely location for an east coast submarine base, Defence Minister Richard Marles said today that no decision has yet been made.
Radioactive waste generated through the program including spent nuclear fuel would be managed on Defence land, he confirmed.