The Australian government will invest an initial $8 billion to upgrade shipyard facilities for nuclear-powered submarines. Funding will be spread over a decade to transform the Henderson Defence Precinct in Perth, Western Australia.
Investment in Henderson Defence Precinct
Defence Minister Richard Marles said the investment follows Australia’s 2021 AUKUS agreement with the United Kingdom and the United States. The nation plans to arm its navy with nuclear-powered submarines.
“The Henderson precinct is central to the AUKUS programme. It will handle maintenance and support for our future submarines,” Marles said. He added the decision reflects Australia’s assessment of its strategic needs.
The development strengthens Australia’s long-range strike capabilities as China’s military presence grows in the Pacific. Currently, Australia has no infrastructure for nuclear-powered submarines. The plan is to acquire at least three US Virginia-class submarines within 15 years and eventually build its own.
Upgrades at Henderson will include high-security dry docks for submarine maintenance, facilities for landing craft, and construction of Japanese Mogami-class frigates. The United States will also use the shipyard for its own submarines. Marles estimated the total cost could reach $16.6 billion.
Broader defence initiatives
This expansion is part of a wider set of defence initiatives. In August, Australia announced plans to acquire 11 Mogami-class frigates from Japan’s Mitsubishi Heavy Industries, costing $6.6 billion over ten years.
The first three frigates will be built overseas, while the remainder will be constructed in Western Australia. This will increase the navy’s fleet from 11 to 26 major warships.
Last week, the government announced a $1.13 billion fleet of “Ghost Shark” underwater attack drones. The first units are expected to enter service in January.
The AUKUS submarine programme, central to Australia’s defence strategy, could cost up to $235 billion over 30 years. Some critics question whether the US can supply nuclear-powered submarines for both navies.
Canberra remains confident in the pact. Reports suggest US Secretary of State Marco Rubio reassured Marles that AUKUS would proceed. The minister highlighted that discussions with the US have reflected “a strong sense of positivity about the role AUKUS can play for the United States.”
Including the Henderson investment, the government has committed an extra $46.4 billion to defence spending over the next decade since May 2022.
