The Australian government has announced an additional A$4.6 billion investment in the infrastructure needed to deliver the country's future conventionally armed, nuclear-powered submarines under the AUKUS partnership, bringing its total commitment to the Osborne construction yard to A$8.5 billion.
The funding, announced on July 24 by the Albanese government in partnership with the South Australian government, will support the continued development of the Nuclear-Powered Submarine Construction Yard at Osborne, South Australia, which will serve as the centerpiece of Australia's submarine-building enterprise.
The latest investment follows the A$3.9 billion announced in February and will finance ongoing construction, workforce development and industrial capability initiatives across the Osborne precinct as Australia prepares to build and sustain its future submarine fleet.
According to the government, Australian Naval Infrastructure (ANI) has already awarded approximately A$1.9 billion in contracts to Australian companies, supporting local businesses and strengthening domestic supply chains.
The broader conventionally armed, nuclear-powered submarine program is expected to create nearly 10,000 jobs in South Australia alone.
Approximately 1,100 workers are already involved in delivering the construction yard and associated workforce initiatives. This includes around 100 workers supporting the Skills and Training Academy Campus, 400 to 500 workers working on Production Demonstration Facilities, and approximately 500 designers and project managers responsible for planning, design and project delivery.
The government said the Skills and Training Academy Campus remains on schedule to begin operations in the first quarter of 2028. Once fully operational, the academy will accommodate up to 1,000 learners simultaneously, providing practical and classroom-based training for Australia's future nuclear-powered submarine workforce and the broader naval shipbuilding sector.
The facility will feature life-sized mock-ups and prototypes designed to replicate the working environment of the submarine construction yard. Training will be delivered with support from Australia's sovereign submarine build partners, BAE Systems and ASC Pty.
Deputy Prime Minister and Minister for Defense Richard Marles described the investment as another milestone in establishing Australia's sovereign capability to build, operate and sustain its future submarine fleet.
"The work underway right now at Osborne demonstrates that AUKUS is on track and happening now, all while creating opportunities for Australian industry and workers for decades to come," Marles said.
“The submarine yard will be ten times bigger than the existing shipyard. This project will dwarf the delivery of a non-stop South Road and New Women’s and Children’s Hospital combined," South Australian Premier, Peter Malinauskas, commented.
"The Skills and Training Academy Campus will play a vital role in developing the highly skilled workforce needed to support Australia's future submarine capability and broader naval shipbuilding enterprise," Minister for Defence Industry, Pat Conroy, added.
The Osborne construction yard forms a key pillar of Australia's AUKUS program, under which the country will acquire and eventually build conventionally armed, nuclear-powered submarines while establishing the industrial base and workforce needed to sustain the capability over the coming decades.