Australia has paid A$800 million ($525 million) to the United States as the second instalment of the AUKUS submarine deal, despite a formal review by President Donald Trump‘s administration.
Australian Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $500 million paid in February.
Indo-Pacific Defence Pact
In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China’s ambitions in the Indo-Pacific.
Australia committed to spending A$368 billion over three decades in its biggest-ever defence deal.
Canberra is due to pay the U.S. $2 billion by year-end to support the expansion of American submarine shipyards, Reuters reported in April.
Boosting Allied Industrial Capacity
“There’s a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity,” Albanese told national broadcaster ABC.
“As part of that as well, we have Australians on the ground, learning those skills.”
Trump launched a formal review of AUKUS in June to examine whether the pact met his “American First” criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS.
Australia ‘Supports’ AUKUS
Australia, which sees the submarines as critical to its own defence as tensions grow over China’s military buildup, has maintained it is confident the pact will proceed.
“We support AUKUS,” Albanese said. “We have an agreement to a treaty level, with our partners, signed, of course, in San Diego with the United States and the United Kingdom.”
Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine.
($1 = 1.5230 Australian dollars)
(With inputs from Reuters)
