Australia signs US$35 billion submarine deal with France as countries vie for influence in the Pacific
- Under the Strategic Partnership Agreement, 12 conventionally powered submarines derived from the Naval Group Barracuda nuclear design will be constructed in a new shipyard in South Australia
- This is Australia’s largest ever defence procurement project and also the largest ever foreign sales deal by French shipbuilder Naval Group
Australia formally signed a A$50 billion (US$35 billion) “strategic partnership” with France to build 12 state of the art submarines on Monday, a signal of Canberra’s willingness to project power across the Pacific.
Prime Minister Scott Morrison hailed the “very audacious plan” at a ceremony in Canberra as “part of Australia’s biggest ever peacetime investment in defence”.
The partnership’s main pillar is a contract for France’s Naval Group – a consortium with state backing – to build 12 attack-class submarines and has been years in the making.
At roughly US$35 billion, this is Australia’s largest defence procurement project and the largest foreign sales deal by French shipbuilder Naval Group.
The first submarine is expected to be finished in the early 2030s, starting with sea trials around the first quarter of 2031 and operational testing in late 2032.
Critics say that is too late: the waters to Australia’s north and east are the scene of an intense struggle between the United States, China and regional powers, who are all vying for influence.