A submarine-building and defence-technology pact between America, Australia and Britain, signed in 2021. Under the agreement, Australia would put nuclear-powered submarines to sea by the mid-2030s, joining an exclusive club of nations operating nuclear-powered vessels. Nuclear-powered submarines can range over longer distances than their diesel-powered counterparts.
America would sell three to five Virginia-class attack submarines to Australia in the middle of the next decade. Britain and Australia will jointly design and build an advanced nuclear-powered submarine dubbed SSN-AUKUS. Australia plans to build five and Britain 12 such submarines, some of which will patrol the Pacific. Australia is injecting $3bn into America's submarine industry as part of the deal.
America's submarine industry has fallen behind its production targets, making only 1.2 boats a year against a target of around 2.3. This shortfall is the central risk to the programme.
From 2027 Australia will begin hosting and maintaining American and British nuclear-powered submarines at a base near Perth. That would put them beyond the range of most Chinese missiles, unlike American submarine bases in Guam and Japan.
Elbridge Colby, the Pentagon's policy chief, is leading a review of AUKUS. Before taking office he sharply criticised the sale of Virginia-class submarines as giving away the "crown jewels" at a time when China might be most likely to attempt to invade Taiwan. He has since softened his position, saying America "should do everything we can to make this work", provided the submarine industry can increase production. The review has made supporters in all three countries nervous.
The Pentagon is demanding that Australia sharply increase defence spending and commit in advance to fighting alongside America in any war over Taiwan. Many Australians regard this as an affront to their sovereignty. Penny Wong, the foreign minister, has highlighted Australia's differences with America on trade. By mid-2025 AUKUS hangs in the balance.
In July 2025 David Lammy (Britain's foreign secretary) and John Healey (defence secretary) signed a 50-year bilateral treaty with Australia, cementing the AUKUS arrangement. Richard Marles, Australia's defence minister, and Penny Wong, Australia's foreign minister, were their counterparts. The treaty sets parameters for co-operation on the design and build of future nuclear-powered submarines, industry and workforce requirements. British officials estimate it will contribute approximately £20bn ($27bn) in exports over 25 years and support around 21,000 British jobs.
In July 2025 HMS Prince of Wales, the flagship of Britain's Royal Navy, berthed at Darwin harbour in Australia's Northern Territory—the first time a British aircraft carrier had berthed at an Australian navy base since 1997. The carrier was participating in Talisman Sabre 2025, the largest military exercise Australia has ever hosted, involving around 35,000 personnel from 19 countries. Elbridge Colby, the Pentagon's policy chief, criticised Britain's decision to send a carrier to the Indo-Pacific, suggesting it should focus on the Russian threat instead.
A second component of the pact focuses on defence-technology co-operation in areas such as artificial intelligence. This is relatively uncontroversial.
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