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Australia to spend $8B on nuclear sub shipyard to counter China

Australia is pumping billions into the Henderson Shipyard renovation near Perth after the 2021 agreement with the United Kingdom and the United States under AUKUS.

News Arena Network - Canberra - UPDATED: September 14, 2025, 12:43 PM - 2 min read

A representative image.


Australia has decided to invest billions in funds to revamp facilities at the shipyard for nuclear-powered submarines to be delivered under the 2021 AUKUS pact.


Australia is investing a total sum of AU$12 billion ($8 billion, €6.8 billion) to upgrade facilities at a shipyard as part of a 20-year plan to turn it into a maintenance centre for the future fleet of nuclear-powered submarines.


Australia is pumping billions into the Henderson Shipyard renovation near Perth after the 2021 agreement with the United Kingdom and the United States under AUKUS. Under the agreement, the United States and the United Kingdom will provide next-generation nuclear-powered submarines to Australia to tackle China’s growing influence in the Indo-Pacific region.

 


However, with the current pace and China’s massive military and navy upgrades, it would be only for deterrence against attacks rather than offensives. China is already ahead of most of the developed nations in terms of naval fleet, including the combined strength of the majority of the NATO nations.


Beijing, which was once dubbed a mere white water navy, has shocked the international community by developing massive naval capabilities, aiming to make it a full-fledged blue water navy by the end of this decade. Fearing its size and strength, the United States allied with the UK and Australia to limit the Chinese influence.


Meanwhile, Australian Defence Minister Richard Marles said on Sunday that the "very significant" investment will be spent over a decade at the shipbuilding and maintenance precinct situated in Western Australia.

 

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Marles said, "Henderson is a key piece of the AUKUS story, and, from that point of view, it will be welcomed in the US, as it will be welcomed in the United Kingdom, for sure.” The Australian defence minister added that the US would be able to use the planned defence facilities near Perth to help deliver the AUKUS submarines.


"This is about being able to sustain and maintain Australia's future submarines, but it is very much a facility that is being built in the context of AUKUS," he added.


While Australia aims to strengthen its submarine fleet, China, Russia, and North Korea are also making efforts to counter the US and its allies, including AUKUS and QUAD, in the region. China has already made it clear that it will not compromise on its ambitions and missions in the Indo-Pacific region, even if that means maintaining an aggressive stance.


The whole context of these military alliances is to get China into direct military confrontations with the US in order to limit Beijing’s growing industrial and manufacturing advancements, which constitute nearly 30 per cent of the global markets.

 

Also Read: Iran reconsidering nuclear inspection access to IAEA: Araghchi


 

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