Government launches nuclear sub build strategy

The strategy aims to give Australian businesses confidence to invest in their technical capabilities, workforce, and infrastructure by outlining a prioritisation framework for industry participation.

To support this, the government has committed $262 million to uplift the local defence sector as part of Australia’s broader nuclear-powered submarine program, announced earlier this year.

Deputy Prime Minister and Defence Minister, Richard Marles described the initiative as one of the most significant industrial transformations in Australian history.

“This is an opportunity to build a future made in Australia, by Australians, delivering world-leading maritime capability, advanced manufacturing, well-paid skilled jobs, and long-term industry growth. Australian industry will be at the forefront of our conventionally armed, nuclear‑powered submarine program – helping to build, operate and maintain this crucial capability,” the Deputy Prime Minister explained.

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The AUKUS initiative is expected to create around 20,000 direct jobs across government and industry over the next three decades. This includes:

• Between 4,000 and 5,500 jobs in South Australia to support submarine construction;
• Up to 4,000 roles dedicated to designing and building infrastructure at Osborne’s submarine construction yard;
• Around 3,000 direct jobs over the next decade for the expansion of HMAS Stirling in Western Australia; and
• A further 3,000 roles for contingency and depot-level maintenance at the Defence Precinct in Henderson once established.

“Our work does not stop here. As a multi-decade, multi-generational undertaking which will create around 20,000 jobs across the country, the Strategy will continue to evolve in line with industry and capability requirements as the AUKUS pathway progresses,” the Deputy Prime Minister said.

To ensure Australia’s industry is ready for this transformation, the strategy focuses on five key areas:

• Providing clarity on industry demand;
• Enhancing investment attractiveness in critical sectors;
• Streamlining regulations;
• Expanding the skilled workforce; and
• Integrating Australian businesses into US and UK supply chains.

The government’s commitment to developing Australian industry—particularly small and medium-sized enterprises—aligns with broader efforts to bolster the country’s sovereign maritime industrial base. This strategy, developed in consultation with industry, unions, and academia, will evolve as Australia’s nuclear-powered submarine program advances.

Minister for Defence Industry and Capability Delivery, Pat Conroy expanded on the Deputy Prime Minister's comments, saying, “The opportunities presented for Australian industry through our nuclear-powered submarine program are immense, and the Strategy further explains the Australian Government’s commitment to create the opportunities for industry and to support them in accessing them.”

The AUKUS Submarine Industry Strategy forms a key part of the 2024 Naval Shipbuilding and Sustainment Plan and represents a landmark step in Australia’s defence and manufacturing future.

“Australian industry has incredible access to new and unique opportunities beyond our own submarines, now being able to be work with our AUKUS partners and contribute to the sustainment and build of their submarines as we develop a strong, resilient trilateral submarine industrial base. This is our greatest ever industrial undertaking and this strategy will underpin our success,” Minister Conroy said.

AUKUS—an alliance between Australia, the United Kingdom, and the United States—was established to enhance security and stability in the Indo-Pacific region. A key element of this partnership is the development of Australia’s sovereign nuclear-powered submarine capability, which will be supported by extensive industry investment and workforce expansion.

Further details on the strategy can be found here.