The submarines, the sale of which will begin in 2032, lie at the heart of Australia’s strategy of improving its long-range strike capabilities in the Pacific, particularly against China.
The deal could cost Canberra up to $235 billion over the next 30 years, and also includes the technology to build its own vessels in the future.
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‘America First’ agenda
In September, Canberra also revealed a US$8 billion investment to be spent over a decade to transform a shipbuilding and maintenance precinct in Perth, Western Australia, into facilities for a future fleet of nuclear-powered submarines.
Australia had a major bust-up with France in 2021 when it cancelled a multi-billion-dollar deal to buy a fleet of diesel-powered submarines from Paris and went with the AUKUS programme instead.
The pact was thrown into doubt last June when Washington said it was launching a review into whether it aligned with President Donald Trump’s “America First” agenda.
In December, the Pentagon said it had cleared that hurdle and that Trump had ordered it “full steam ahead”.