Australia to buy US made nuclear-powered submarines to modernise its fleet

Australia will purchase U.S.-manufactured, nuclear-powered attack submarines to modernise its fleet, a European official and a person familiar with the matter said Thursday, amid growing concerns about China's influence in the Indo-Pacific region.

The purchase agreement for Virginia-class submarines will be announced Monday when President Joe Biden, Australian Prime Minister Anthony Albanese and U.K. Prime Minister Rishi Sunak meet in San Diego for talks on the 18-month-old nuclear partnership known by the acronym AUKUS. The people spoke on the condition of anonymity to discuss the matter ahead of the announcement.

The AUKUS agreement, announced in 2021, paved the way for Australia to get access to nuclear-powered submarines, which are stealthier and more capable than conventionally powered boats.

We all recognize the imperative of ensuring peace and stability in the Indo-Pacific over the long term, Biden said in September 2021 when the partnership was announced. We need to be able to address both the current strategic environment in the region and how it may evolve.

The secretly brokered deal included the Australian government's cancellation of a USD 66 billion contract for a French-built fleet of conventional submarines, which sparked a diplomatic row within the Western alliance that took months to mend.

The European official said France had been briefed on the terms of the purchase agreement. Biden spoke with French President Emmanuel Macron on Tuesday, the White House said, adding that they discussed the cooperation between the United States and France in the Indo-Pacific region.

The submarines, which cost USD 3 billion each, are built at shipbuilding plants in Virginia and Connecticut. Under the terms of the agreement, subs would eventually also be built in the U.K. and in Australia with U.S. technology and support, the person familiar with the matter said. The initial plans called for all of the subs to be constructed in Adelaide, Australia.

The U.S. would also step up its port visits in Australia to provide the country with more familiarity with the nuclear-powered technology.

The White House declined to comment on the submarine purchase ahead of the planned meeting on Monday.