Australia and US Agree to Amend AUKUS Submarine Deal to Include Only Used Vessels

Australia and the United States have declared their intention to modify the AUKUS pact concerning the acquisition of nuclear-powered submarines.

The revised agreement will no longer involve manufacturing new submarines for Australia; instead, all submarines provided will be previously used vessels.

The two countries discussed this change during the Shangri-La Dialogue on defense held in Singapore, which gathers senior officials and experts from approximately 45 nations.

A joint statement issued by Australian Deputy Prime Minister Richard Marles, U.S. Secretary of Defense Pete Hegseth, and British Secretary of Defense John Healey confirmed the amendment to the submarine agreement.

The statement said, "The Deputy Prime Minister and the two Defense Ministers welcomed the proposed approach to streamline Australia's acquisition of Virginia-class submarines, simplify supply chain management, operational and maintenance requirements, and maximize cost efficiency."

It added, "This approach will enable Australia to have three Virginia-class submarines in service instead of a combination of new and used submarines."

Under the original AUKUS agreement signed in 2021, Australia was expected to receive at least three Virginia-class nuclear submarines from the United States within 15 years.

The AUKUS pact is central to Australia's defense strategy, with projected costs reaching up to $235 billion over 30 years, according to government estimates.

The three countries signed the agreement as part of efforts to counter China's growing influence in the Indo-Pacific region, a move China described as "dangerous" and warned could provoke an arms race in the area.

The U.S. Navy currently operates 24 Virginia-class submarines, but American shipyards face challenges in meeting production targets of two new vessels annually.

Within the United States, critics have questioned why Washington is selling nuclear-powered submarines to Australia before fulfilling its own military needs and securing its inventory.

Australia had initially anticipated receiving two used submarines and one new Virginia-class submarine.