Australia will receive only used nuclear-powered submarines from the United States under a revised agreement aimed at simplifying the AUKUS defence partnership and reducing costs, officials confirmed during the Shangri-La Dialogue security summit in Singapore.
The updated arrangement changes earlier expectations that Australia would receive a mix of used and newly built submarines. Instead, Canberra will now acquire three in-service Virginia-class submarines from the US Navy as part of its long-term defence strategy.
Australian Defence Minister Richard Marles described the revised approach as more practical and cost-effective, while defence leaders from the United States, Australia, and the United Kingdom emphasized efficiency and operational simplicity.
Australia shifts to used Virginia-class submarines
Australia had originally expected to receive two used submarines and one newly built Virginia-class vessel under the AUKUS agreement signed in 2021.
However, officials confirmed that all three submarines will now come from existing US Navy stock. The move is designed to simplify training, logistics, maintenance, and supply chains by ensuring Australia operates the same model across its fleet.
Defence Minister Richard Marles said the change supports long-term operational readiness and lowers complexity in what he described as an expensive and technically demanding military programme.
Speaking at the Shangri-La Dialogue in Singapore, Marles defended the revised arrangement and described it as a practical solution.
He said operating the same submarine type would make it easier for Australian crews to train and for maintenance teams to sustain the fleet over time. He also stressed the importance of simplicity in major defence procurement projects.
Marles acknowledged the programme remains costly but said the government is seeking efficient options wherever possible while strengthening Australia’s naval capabilities.
AUKUS partners agree to streamline submarine plan
In a joint statement, Marles joined US Defense Secretary Pete Hegseth and UK Defence Secretary John Healey in supporting the revised submarine transfer plan.
The statement said the updated arrangement would streamline Australia’s submarine acquisition process while simplifying supply chain management, maintenance requirements, and operational systems.
Officials added that replacing the previous mixed model with three in-service submarines would improve efficiency and maximize cost savings.
The decision also comes as US shipyards continue to struggle to meet submarine production goals.
The US Navy currently operates 24 Virginia-class submarines, but manufacturers have faced difficulties maintaining planned construction targets of two new vessels per year.
Critics in the United States have questioned whether Washington should prioritise its own naval fleet before transferring submarines to allies, especially amid growing global security concerns.
Australia’s costly defence strategy moves forward
The submarine agreement remains a central pillar of Australia’s long-term defence planning and regional security posture.
Government forecasts estimate the full AUKUS submarine programme could cost as much as US$235 billion over the next 30 years, making it one of Australia’s largest military investments.
Australian officials argue the investment is necessary to strengthen national defence and improve strategic cooperation with allies in the Indo-Pacific region.