What is AUKUS, submarine deal between Australia, UK and US?
12 Jun 2025

Australia's Defense Minister Richard Marles has expressed confidence that the AUKUS submarine deal with the United Kingdom and the United States will go ahead, despite reports that the Pentagon is reviewing the 2021 deal.

The US has said that it was reviewing the deal to see if it's in line with President Donald Trump's "America First" agenda.

Marles emphasized that such reassessments are normal for new administrations, adding that he is "very confident this is going to happen."

'AUKUS deal will go ahead'
Minister's statement

Speaking to ABC Radio Melbourne, Marles said, "You just need to look at the map to understand that Australia absolutely needs to have a long-range submarine capability."

He noted that it is natural for a new administration to review such major agreements, adding, "This is a multi-decade plan...whenever we see a new government, a review of this kind is going to be something which will be undertaken."

AUKUS pact counters China's influence in Indo-Pacific
AUKUS agreement

The AUKUS pact, signed in 2021 under then-US President Joe Biden, seeks to counter China's influence in the Indo-Pacific region.

Under the deal, Australia will receive nuclear-powered submarines with technology from the US and UK.

The agreement involves Australia procuring up to three used Virginia-class submarines from the US starting in the early 2030s, with options for two more.

After that, the objective is to develop and build a whole new nuclear-powered submarine model for the British and Australian navies.

Australia has committed $239 billion for AUKUS deal
Financial commitment

This attack craft will be produced in Britain and Australia to a British design but will use technologies from all three countries.

Australia has committed A$368 billion ($239.3 billion) over 30 years for the AUKUS deal, its largest-ever defense project with the US and UK.

In 2025, Australia will make a $2 billion payment to upgrade US submarine shipyards.

The first $500 million payment was made earlier this year during Marles's visit to Washington.

Albanese to meet Trump
Review details

Australian Prime Minister Anthony Albanese is likely to discuss the agreement with Trump next week during a G7 summit in Canada.

The US has been pushing its allies to start spending at least 3% of their GDP on defense.

The UK has agreed to spend 2.5% of its GDP on defense by 2028 and 3% by the next parliament. Australia has also announced it will increase its defense spending, but not to the 3.5% that the US wants.