The Australian government will invest a further A$4.6bn ($3.2bn) in Australian Naval Infrastructure (ANI) to support ongoing work at the nuclear-powered submarine construction yard in Osborne, South Australia.
The new investment, announced on 24 July, increases total government funding for the facility to A$8.5bn, advancing Australia’s plans to build conventionally-armed, nuclear-powered submarines under Australia, the UK, and the US (AUKUS) partnership.
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According to the government, this additional funding will maintain progress on the construction and development of key infrastructure across Osborne, as well as the workforce and industrial capability necessary to deliver Australia’s future submarine fleet.
The project is regarded as “one of the most complex” industrial efforts in national history and is intended to underpin sovereign submarine capability for decades.
Australian Deputy Prime Minister Richard Marles said: “This investment is another important step in building the sovereign capability Australia will need to build, operate, maintain and sustain our future submarine fleet.
“The work underway right now at Osborne demonstrates that AUKUS is on track and happening now, all while creating opportunities for Australian industry and workers for decades to come.”
ANI has already awarded approximately A$1.9bn in contracts, supporting business growth and domestic supply chains.
Around 1,100 workers are currently participating in activities associated with the construction yard and related initiatives.
This workforce includes approximately 500 designers and project managers, 400–500 personnel supporting production demonstration facilities, and 100 focused on developing the Skills and Training Academy Campus.
The government expects nearly 10,000 jobs to be generated in South Australia as the programme progresses.
The Skills and Training Academy Campus is scheduled to begin operations in the first quarter of 2028, with planned capacity to accommodate up to 1,000 learners at any one time.
The academy will replicate the submarine yard environment, offering integrated practical and theoretical training, and drawing on expertise from BAE Systems and ASC.
The Osborne construction yard forms a central part of Australia’s commitment to the AUKUS submarine initiative, in partnership with the UK and US.
Earlier this month, three Australian companies received a combined A$6.2m from the Australian Defence Force to support new projects under the 2025 AUKUS Maritime Innovation Challenge, as the government continues to promote defence industry development and innovation.
