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Australia Accelerates Submarine and Frigate Program as Tensions with China Escalate.
According to a Reuters report published on March 24, 2025, Australia announced it would bring forward one billion Australian dollars in defense spending in the federal budget to enhance its military capabilities. This investment includes the production of guided munitions, establishing a base for AUKUS submarines, and the accelerated acquisition of a frigate. The decision comes amid increasing pressure from the United States for its security allies to raise their defense expenditures.
United States Navy Virginia-class submarine USS Minnesota prepares to come alongside Fleet Base West in Western Australia (Picture source: Australian MoD)
Defense Minister Richard Marles stated that the federal budget would include an additional 10.6 billion Australian dollars for defense over the next four years. This funding is part of a broader plan to invest 50 billion Australian dollars in the military sector over the next decade, representing one of the most significant increases in defense spending since World War II. Marles explained that accelerating the budget aims to strengthen Australia's defense capabilities and address emerging security challenges in the Indo-Pacific region.
A substantial portion of these funds will be allocated to upgrading HMAS Stirling naval base and the Henderson defense complex to accommodate the "Submarine Rotational Force West" under AUKUS. Starting in 2027, up to four U.S. submarines and one British submarine will be stationed in Western Australia as part of this strategic cooperation.
The funding will also accelerate the entry of an additional frigate into service before the end of the decade. This initiative is intended to reinforce Australia's naval presence in an increasingly contested region, particularly in the South China Sea and the Pacific, where geopolitical tensions are rising.
At the same time, Australia has received the first two of 42 High Mobility Artillery Rocket Systems (HIMARS) launchers ordered from Lockheed Martin. These long-range artillery systems will enhance the mobility of Australian forces, enabling rapid deployment across the Indo-Pacific. The government also confirmed that the domestic production of guided munitions for the HIMARS system, including Guided Multiple Launch Rocket Systems (GMLRS), will commence this year as part of the Guided Weapons and Explosives Enterprise program. This initiative aims to reduce Australia’s reliance on foreign suppliers and strengthen its domestic defense industry.
Defense Industry Minister Pat Conroy also announced that Australia will take delivery this year of the Precision Strike Missile, with a range of 500 kilometers, to be integrated into the HIMARS system. This acquisition aligns with the country's broader strategy to enhance its deterrence capabilities and adapt to evolving modern warfare requirements.
With this significant budget allocation and strategic acquisitions, Australia seeks to reinforce its military preparedness in response to shifting geopolitical dynamics. By accelerating defense investments, the country aims to meet growing regional security demands and fulfill its commitments to strategic partners under the AUKUS alliance.
The Australian submarine program, launched under the AUKUS pact signed in September 2021 with the United States and the United Kingdom, is designed to equip the Royal Australian Navy with nuclear-powered submarines to enhance its operational reach in the Indo-Pacific. The plan initially involves acquiring three Virginia-class submarines from the United States between 2032 and 2038, followed by the construction of five additional submarines under the SSN-AUKUS program. These new vessels will be based on a British design incorporating advanced U.S. technology. This transition to nuclear-powered submarines represents a major shift for Australia, which has traditionally relied on conventionally powered diesel-electric submarines.
However, uncertainties remain regarding the feasibility of the program. A key concern is whether the United States can meet delivery commitments given existing production constraints and budgetary pressures. The U.S. shipbuilding industry faces challenges that could delay the timeline set by Canberra. Additionally, some Australian policymakers have raised concerns about the country’s reliance on U.S. technology and potential shifts in Washington’s strategic priorities. These uncertainties have led to discussions about alternative solutions, including reconsidering cooperation with France, which had previously proposed conventionally powered submarines before the agreement was canceled in 2021.
For the United States, the AUKUS program represents an opportunity to strengthen its military presence in the Indo-Pacific by integrating allied submarine forces into broader strategic operations. However, questions have been raised about the sustainability of this commitment, particularly regarding the impact on U.S. submarine production capacity. Reports indicate that fulfilling Australian orders could lead to additional costs and delays, raising concerns about whether this could strain U.S. naval readiness. Furthermore, the transfer of advanced nuclear technology remains a sensitive issue, with discussions on how Australia will manage and maintain these submarines over the long term.
Amid these developments, Australia is positioning itself to counter growing Chinese influence in the Pacific. Beijing has been expanding its presence in the region through economic, diplomatic, and military initiatives, raising concerns in Canberra about potential security challenges. The Australian government has expressed apprehensions over what it describes as "coercive tactics" by China and the increasing risk of regional instability. To address these concerns, Australia has introduced a new national defense strategy focused on securing the Pacific and strengthening regional alliances, particularly with the United States, Japan, and India.
This military expansion comes at a time when strategic competition in the Indo-Pacific is intensifying. As regional tensions persist, Australia reinforces its capabilities to maintain stability and safeguard its interests. Through substantial investments in naval assets and strengthened security partnerships, Canberra aims to solidify its role in shaping the future security landscape of the Indo-Pacific.