With the AUKUS security partnership still under review by the Trump administration, the latest announcement from the Australian government that it would plough A$12 billion (US$8 billion) into its Henderson Defence Precinct near Perth is being seen as a sign of positivity for the future of the pact.

The investment, set to be delivered over the next decade, will accelerate the ongoing creation of the strategic shipbuilding and sustainment precinct, which has been set out as vital for Australia’s national security. Once complete, the facility will enable the country to deliver continuous naval shipbuilding, while also facilitating Australia’s AUKUS commitments... Continues below

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The location of the shipyard is strategically important as it shares its longitude with Beijing, China, which has been expanding its military presence across the Pacific in recent years. Richard Marles, Australia’s defence minister and deputy PM, referred to Perth as a “geostrategic place in Australia”, noting its proximity to the South China Sea and the East India Sea to the north, as well as being a gateway to the Indian Ocean.

Although the prime focus seems to be on the shipyard’s strategic significance for Australia, the latest investment into Henderson is seen as a key move in the AUKUS agreement between Australia, the UK and the US, with Marles pointing out that the shipyard upgrade will be “welcomed” by the other two countries.

The US will also be able to use the planned defence facilities as dry docks for its nuclear-powered submarines, as the shipyard will be Australia’s first piece of infrastructure to service nuclear-powered submarines. As well as creating high-security dry docks at the facility, the A$12 billion investment will help to create facilities to build landing craft and, eventually, Japanese Mogami-class frigates, according to Marles.

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The total cost of the defence precinct could amount to around A$25 billion, said the defence minister. Last year, the Australian government footed an initial investment of A$127 million to upgrade the shipyard’s facilities.

In June this year, the Pentagon announced it was reviewing the AUKUS security pact between Australia, the UK and the US to ensure it aligned with President Donald Trump’s ‘America-first’ agenda.

As part of the agreement between the three countries, Australia was set to acquire Virginia-class submarines from the US. At the time the review was announced, there were fears that this programme, which forms an integral part of Australia’s defence strategy, would fail to materialise.

However, the Washington Post recently reported that US Secretary of State Marco Rubio had assured Australia’s Marles privately that the submarine deal will not be terminated, with Marles later saying: “I’ve had numerous conversations with American counterparts…I'm really confident about the proceeding of AUKUS under the Trump administration.”

He added: “We did speak about AUKUS in the meetings that I had in Washington a couple of weeks ago...And there was a positive sentiment there about how we’re proceeding with AUKUS and needing to get this done.

“The alliance is going well, our defence relationship is going well, AUKUS is going well.”

Under AUKUS Pillar 1 of the 30-year agreement, which focuses on the supply and delivery of nuclear-powered attack submarines, the Royal Australian Navy (RAN) is scheduled to get its first Virginia-class submarines from the US in the early-2030s.

Australia will then acquire largely UK-designed SSN-AUKUS submarines in the 2040s, parts of which will be built in Australia. The RAN will eventually field a fleet of eight nuclear-powered submarines.

Shephard forecasts the AUKUS-SSNs could cost around US$3.7 billion each, while between US$178 and US$245 billion will reportedly be spent over the next 30 years. Deliveries are expected to take place between the early 2040s and the early 2050s, however there are threats to this effort most notably in US government policy and the ability of that country’s industrial capability.

Under AUKUS Pillar 2, the three allies will collaborate on their “advanced capabilities”, sharing their military expertise in areas such as cyber, AI, quantum and hypersonics.

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