30 July, 2025
us-extends-review-of-368-billion-submarine-deal-with-australia

UPDATE: Australia faces uncertainty as the US Department of Defense extends its review of the crucial $368 billion nuclear submarine deal under the AUKUS security pact. The Pentagon’s initial 30-day assessment, which began in June 2023, is now projected to conclude between September and November, raising alarms over the delivery timelines of promised submarines.

Prime Minister Anthony Albanese downplayed concerns over the delay, stating, “It’s not surprising that would be the case.” Speaking to reporters in Canberra on Wednesday, he expressed confidence in the process, noting, “We expect that those things take longer than just 30 days.”

The review, led by Elbridge Colby, a known skeptic of the AUKUS submarine deal, aims to provide a “fact-based, rigorous assessment” of the security pact’s alignment with former President Donald Trump’s “America First” strategy. The extended timeline has prompted discussions among defense analysts who predict a potential request for increased funding from Australia to bolster the US submarine industrial base.

As part of its commitment, Australia has made a second payment of $800 million to the US, aimed at accelerating submarine production, according to reports from Nine newspapers. This investment underscores Australia’s determination to secure its maritime defense capabilities amidst rising tensions in the Indo-Pacific region.

The implications of this delay are significant. The extended review raises questions about Australia’s defense posture and long-term strategic planning, especially as the US faces production challenges at its shipyards. The deal promises at least three Virginia-class submarines by the early 2030s, with a new fleet expected to emerge in the 2040s.

With the review still underway, experts are closely monitoring the situation. The outcome will inevitably affect not only military readiness but also the geopolitical dynamics in the Asia-Pacific. Observers will be watching for any announcements or developments as the timeline progresses towards the end of the year.

Stay tuned for further updates as this situation develops. The future of Australia’s naval capabilities depends on the outcomes of this crucial review.