Australia and US Streamline AUKUS Submarine Deal, Shift to All In‑Service Virginia-Class Fleet

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Australia and the United States have agreed to “streamline” the AUKUS submarine program, confirming a major shift that will see Canberra receive only in‑service Virginia‑class submarines, rather than a mix of new and used vessels. All information has been verified with a trusted, up‑to‑date source.

The announcement came during the Shangri‑La Dialogue in Singapore, where defence chiefs from around 45 nations gathered for high‑level talks. In a joint statement, Australian Deputy Prime Minister Richard Marles, US Defense Secretary Pete Hegseth, and UK Defence Secretary John Healey said the revised plan would simplify supply chains, reduce maintenance complexity and improve cost efficiency.

Under the original 2021 AUKUS agreement, Australia expected to acquire at least three Virginia‑class submarines over the next 15 years two used and one newly built. But with US shipyards struggling to meet production targets of two new submarines per year, Washington has opted to supply only existing in‑service vessels.

“The proposed approach will streamline Australia’s acquisition of Virginia‑class submarines, simplifying operational and maintenance requirements,” the joint statement said. “This would enable Australia to acquire three in‑service VCS in lieu of a mixture of new and in‑service variants.”

The US Navy currently operates 24 Virginia‑class submarines, and the decision to transfer in‑service boats has drawn criticism from some in Washington who argue the US should prioritise its own fleet before exporting nuclear‑powered assets.

Despite the shift, the submarine program remains the centrepiece of Australia’s long‑term defence strategy. Government forecasts estimate the AUKUS submarine plan could cost up to $235 billion over 30 years, making it the most expensive defence project in Australian history.

The streamlined approach is intended to keep the program on track while easing pressure on US shipyards and ensuring Australia receives its submarines within the promised timeframe.

 

 

 

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