Australia has announced an initial investment of 12 billion Australian dollars ($8 billion) to expand and modernize its shipyard facilities in Perth, Western Australia. The project, spread across the next decade, will transform the Henderson Defense Precinct into a hub capable of supporting the nation’s upcoming fleet of nuclear-powered submarines.
The move follows the landmark 2021 AUKUS agreement with the United States and the United Kingdom, under which Australia will acquire at least three Virginia-class nuclear submarines before eventually building its own. Since the country currently lacks the infrastructure to service or construct such vessels, the Perth upgrade is seen as a critical first step.
The shipyard development forms part of a wider military restructuring effort aimed at strengthening Australia’s long-range strike capabilities, particularly as China continues to expand its military presence in the Indo-Pacific. Alongside this effort, Canberra has also launched other high-profile naval programs. In August, it announced plans to procure 11 Mogami-class stealth frigates from Japan’s Mitsubishi Heavy Industries, a $10 billion program expected to expand Australia’s fleet of warships from 11 to 26 over the next decade.
Complementing these initiatives, the Australian government revealed last week that it would deploy a $1.7 billion fleet of domestically developed “Ghost Shark” underwater attack drones, with the first set to enter service in January. Despite these ambitious undertakings, concerns remain about the AUKUS submarine project, which officials estimate could cost as much as $235 billion over 30 years, making it the centerpiece—and the most expensive element—of Australia’s long-term defense strategy.
