Huge AUKUS Submarines Project Osborne South Australia

Without question or curiosity (such as "can the unproductive US and UK submarine industries deliver?") Australia's government owned ABC News reported a multi $Billion project on February 15, 2026 at https://www.abc.net.au/news/2026-02-15/down-payment-for-30b-adelaide-submarine-shipyard/106346484

 "Prime Minister announces [US$2.76 billion] 'down payment' towards [US$21.2b] Adelaide submarine shipyard

In short:

The prime minister has announced [US$2.76 billion] in funding towards [US$21.2 billion] in work for the new submarine construction yard in Adelaide.

It will be identical to another shipyard building submarines in the UK.

What's next?

Construction work at the site is set to continue until 2040.

The South Australian and federal governments have released plans worth [US$21.2 billion] for a shipyard in Adelaide that will build at least eight nuclear-powered submarines under the AUKUS pact with the US and the UK.

[Australia's] Prime Minister Anthony Albanese announced that the Commonwealth would make a [US$2.76 billion] "down payment" towards the work at Osborne, with the rest of funding to "flow continuously" over the rest of the shipyard's construction, due to be complete in 2040.

On top of enabling works worth [US$1.4 billion], construction has already started on a fabrication area worth [US$3.5 billion] and a Skills and Training Academy worth [US$354 million].

The The new fabrication hall for submarines will be 420 metres long — more than twice this one at the Osborne South shipyard. 

The shipyard's developer, Australian Naval Infrastructure (ANI), a company owned by the federal government, estimated the next stage, an outfitting area, would cost [US$5.66 billion] to build, while an area for consolidation, testing, launching and commission would cost more than [US$10.6 billion].

The state government estimated at least 4,000 workers would design and build the submarine construction yard, while 5,500 workers would support nuclear-powered submarine production at its peak.

Long time frame for delivery

The submarines are being built as part of the [US$260-billion] AUKUS submarine pact announced in 2021.

It replaced a deal to build French-designed submarines, also in Adelaide.

The first part of the plan is for Australia to buy between three and five nuclear-powered submarines from the US, beginning in the early 2030s, including at two second-hand Virginia-class submarines.

Five of the eight SSN-AUKUS nuclear-powered submarines are due to be delivered by the middle of the 2050s, with the final three delivered in the 2060s.

Vice Admiral Jonathan Mead of the Australian Submarine Agency points out different parts of the new shipyard. (ABC News)
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Vice Admiral Jonathan Mead, the director-general of the Australian Submarine Agency, said experts from the US and the UK had been in Adelaide advising the build.

He said the manufacturing process at Osborne would be "identical" to the shipyard building submarines in the UK [except no Australian expertise in handling submarine reactors!].

"Their facilities are 120 years old; ours will be the most modern submarine yard in the world,"

Vice Admiral Mead said.

Mr Albanese said the construction work and then the work building submarines would provide thousands of jobs into the future in Adelaide.

"If you're a 15 or 16 year old thinking about what am I going to do with my life, you can be assured that there will be well-paid, secure jobs here in Adelaide and you'll get … that satisfaction of seeing what you are creating as a product of your labour and knowing that it is very much your contribution as well to our national interest for decades ahead," Mr Albanese said.

"We do live in an uncertain world, but we can be certain of the economic benefit to the tune of [US$21.2 billion] going forward here in South Australia."

Much larger than frigate work

Mr Albanese met with South Australian Premier Peter Malinauskas for a media conference at the Osborne South shipyard five weeks ahead of the state election.

Mr Malinauskas said the investment at Osborne South, where six Hunter class frigates are being built, was "extraordinary" but it "pales into insignificance" compared with the work for the AUKUS submarines.

"[We're] here to announce arguably the most structurally significant contribution to our economy that we will ever see," Mr Malinauskas said."

"What has been announced today completely dwarfs some of the investments that we've seen in South Australia's recent past — that boggles the mind."

While the premier said "much" of the steel for the buildings would come from Whyalla, Opposition Leader Ashton Hurn said she was hopeful a range of South Australian businesses could be part of the project.

"It's really important that we don't just become a glorified IKEA where we're bringing in products from right across the world and just assembling them here in South Australia," Ms Hurn said.

"We need to be at the heart of this manufacturing opportunity, because that's what will set us up for generations to come."

Defence Teaming Centre chief executive Libby Day says the announcement gives some certainty.

Libby Day from the Defence Teaming Centre, which brings together different parts of the defence industry, welcomed the announcement but said long-term contracts were needed for local businesses.

"We need to go a step further — we need certainty around decisions involving the contracting of local companies into the supply chain of building SSN-AUKUS," Ms Day said.”