Australia Plans Investment of Up to US$100 Billion in Naval Shipbuilding

The Australian government reports it is reaffirming its commitment to continuous naval shipbuilding and taking steps to enhance the long-term strength of the shipbuilding industry. It is part of a plan by Prime Minister Anthony Albanese to expand the shipbuilding efforts for national defense and to expand employment in the industry.

The government released the 2024 version of the Naval Shipbuilding and Sustainment Plan which outlines the long-term plan for naval shipbuilding. The government is calling it a record investment which over the next 30 years could reach upward of US$100 billion. The minimum anticipated investment is at least US$82 billion.

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Among the changes to the plan versus the prior government’s strategy, the Albanese government reports the new plan includes 55 newly announced vessels. Through a 30-year forecast, the plan signals a long-term demand for shipbuilding including the planned nuclear-powered submarine program. As previously announced, the government is also moving forward with enhanced surface combatants and support ships such as landing craft.

“Through the most significant investment in maritime capability in Australia’s history, we will see generations of naval construction projects happen right here, with plans to construct and upgrade over 70 vessels across South Australia and Western Australia,” said Deputy Prime Minister Richard Marles. “The long-term investment laid out in the 2024 Naval Shipbuilding and Sustainment Plan represents the Albanese Government’s vision for continuous naval shipbuilding and sustainment, a future made in Australia, and our commitment to keeping Australians safe.”

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According to the government, these decisions incorporated into the plan will create an inter-generational pipeline of naval construction projects that will support around 8,500 jobs in shipbuilding and sustainment by 2030. Additionally, it anticipates 20,000 jobs over the next 30 years in support of Australia’s nuclear-powered submarine program.

The government plans to invest nearly US$1 billion in vocational education programs to help support the expansion of the shipbuilding workforce. This is in addition to the US$150 million budgeted to attract, train, and retain a new workforce for the nuclear-powered submarines.

In announcing the plan, they said the goal is to create a more lethal navy and army that is appropriate to the strategic environment.