US to Send Used Nuclear Subs to Australia in Defence Deal Overhaul

US to send only used nuclear subs to Australia in amended defence deal

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Australia will receive used nuclear-powered submarines from the US under an amended AUKUS deal, Defence Minister Richard Marles said, citing cost-effectiveness.

The move was announced at the Shangri-La Dialogue in Singapore, where top defence officials and experts from 45 countries met.

Under the 2021 AUKUS deal, Australia was expected to receive at least three Virginia-class submarines within 15 years, but now all three will be in-service vessels from the US Navy stock.

Marles said the decision was "cost-effective" and would simplify supply chain management and operational requirements.

The US Navy has 24 Virginia-class vessels, but American shipyards are struggling to meet production targets.

The AUKUS submarine programme could cost up to $235 billion over 30 years, according to government forecasts.