Australia Commits A$12 Billion to Upgrade Henderson Precinct as AUKUS Submarine Hub

Australia has pledged an initial A$12 billion toward transforming the Henderson Defence Precinct in Western Australia into a world-class shipyard and maintenance facility to support its future fleet of nuclear-powered submarines under the AUKUS partnership, Defence Minister Richard Marles announced. The funding is part of a broader plan expected to cost around A$25 billion over the next decade.

What the Investment Covers

• Construction of secure dry docks capable of servicing and maintaining nuclear-powered submarines.

• Facilities for building landing craft for the Army and general-purpose frigates for the Royal Australian Navy.

• Support infrastructure for sustaining Australia’s surface fleet in addition to the submarine force, including depot-level overhaul and contingency docking.

• Early works including planning, design, and enabling construction.

The precinct upgrade is expected to underpin an estimated 10,000 direct jobs over the next two decades in Western Australia.

Timeline & Related Defence Commitments

• Australia is set to acquire at least three Virginia-class nuclear-powered submarines from the United States in the early 2030s, with options for more.

• The country will eventually co-develop and build its own SSN-AUKUS class submarines, with domestic construction planned for the early to mid-2040s.

• Australia recently selected the Japanese Mogami-class frigate design for its future general-purpose frigates. The first three will be built overseas, while the rest are to be produced in Henderson once the precinct is fully operational.

• Another major project is the “Ghost Shark” underwater drone fleet, long-range unmanned vehicles for surveillance and strike roles, expected to begin entering service in early 2026.

Strategic Implications

This investment underscores Australia’s shift to significantly bolster its naval and undersea capabilities in light of growing regional strategic competition, particularly in the Indo-Pacific. The Henderson Precinct is intended to be central to maintaining continuous naval shipbuilding and sustainment under AUKUS, effectively bridging capability gaps until Australia’s domestically built SSN-AUKUS submarines are ready.

The plan also involves rotational presence of United States and United Kingdom submarines at HMAS Stirling, further integrating Australia into AUKUS operations and strengthening trilateral defence cooperation.

Challenges & Considerations

• The complexity of transforming Henderson into a facility that meets nuclear-submarine maintenance and operational standards, including nuclear safety and security protocols.

• Tight timelines to ensure infrastructure is ready before the arrival of Virginia-class submarines in the early 2030s.

• Concerns over whether the United States can deliver submarines on schedule, given its own production capacity pressures.

Australia’s A$12 billion Henderson investment marks a landmark step toward building a stronger, more self-reliant naval force and reinforcing its place within the AUKUS security framework.