Australia will soon make its second billion-dollar contribution to boost U.S. nuclear submarine shipyards under the AUKUS security pact, Defence Industry Minister Pat Conroy announced in Washington on Tuesday, as Prime Minister Anthony Albanese prepares for his first official visit to U.S. President Donald Trump next week.
The AUKUS agreement, a trilateral defence partnership between Australia, the United States, and the United Kingdom, is designed to strengthen regional security and enable Canberra to acquire nuclear-powered submarines.
The pact is currently under review by the Pentagon, though Australian officials remain confident it will move ahead as planned.
“In the first phase of AUKUS, Australia pledged 3 billion U.S. dollars to help expand America’s submarine production capacity, paving the way for the sale of three Virginia-class submarines to Australia,” Conroy said.
“We’ve already made a billion-dollar payment, and the plan is to provide another billion dollars shortly.”
Speaking to reporters in Washington, Conroy said he has been meeting with Trump administration and U.S. defence industry officials to reinforce Australia’s commitment to the partnership.
Defence Minister Richard Marles confirmed from Canberra that Australia was contributing to the ongoing Pentagon review and had “a sense of when this will conclude,” though he declined to provide details.
During his upcoming visit, Albanese is expected to emphasize the importance of deepening defence industry cooperation with the United States.
Australia is moving toward a new model of co-development and co-production, which includes the local manufacturing of guided weapons and missile systems.
Conroy revealed that Australia expects to produce up to 4,000 Lockheed Martin guided missiles annually from a new factory set to begin operations by the end of the year.
The facility will also supply U.S. defence requirements, marking a significant milestone in bilateral defence industrial collaboration.
He added that Australia and the United States are also working with Lockheed Martin to develop an extended-range Precision Strike Missile capable of reaching “in excess of a thousand kilometres.”
“This is one example of us shifting to a co-design, co-development, co-production, and co-sustainment model, a true partnership that strengthens the industrial base of both our nations,” Conroy said.
The next phase of AUKUS is expected to dominate discussions when Albanese meets Trump in Washington, underscoring Canberra’s growing strategic and industrial ties with its key defence allies.
Source: Reuters
Written By Rodney Mbua
