Australia will receive three operational U.S. Navy nuclear-powered submarines as part of a revised AUKUS agreement, announced at the Shangri-La Dialogue in Singapore on May 31, 2026. This change is a major shift in the security pact between Australia, the United States, and the United Kingdom.

Officials say the new plan will lower costs and make one of Australia’s most complex defense programs easier to manage. The submarine project is still central to Australia’s long-term defense plans.

Originally, under the 2021 AUKUS agreement, Australia was set to get both new and used Virginia-class submarines from the United States. Now, the updated deal gives Australia three attack submarines already in service with the U.S. Navy.

Canberra backs simpler submarine transfer

Australian Defense Minister and Deputy Prime Minister Richard Marles on Sunday said the revised arrangement would make the program easier to manage and operate over the coming decades.

“In the context of a very complicated endeavor, we need to place a premium on simplicity,” said Marles. He also noted that all the submarines will be the same model.

This change means Australian crews and maintenance teams will only need to work with one type of submarine, rather than several different versions. “I cannot overstate the significance of that, both in terms of the submariners who are operating them, but also the people who are working on them to sustain those submarines,” Marles added.

The minister also pointed out the financial benefits of the change, as Australia’s program could cost up to $235 billion over the next 30 years. “It is definitely cost-effective. And to be clear, this is a very expensive program, and so we are trying to find every cost-effective option as we walk down this path.”

A typical Virigina-class submarine measures about 377 feet (115 meters) long, displaces roughly 7,800–8,000 tons, and is powered by a nuclear reactor, allowing it to operate for extended periods underwater without refueling. It can reach underwater speeds of roughly 25 knots and dive to depths greater than 800 feet, according to U.S. Navy specifications.

Joint statement confirms revised approach

The new plan was officially approved in a joint statement released Saturday by Marles, U.S. Secretary of Defense Pete Hegseth, and U.K. Defense Secretary John Healey.

According to the statement, the three governments agreed that having a single type of Virginia-class submarine would make logistics easier and reduce long-term support needs.

“The Deputy Prime Minister and secretaries welcomed the proposed approach to streamline Australia’s acquisition of Virginia-class submarines (VCS), simplifying supply chain management, operational and maintenance requirements, and maximizing cost efficiencies,” the statement said.

“This approach would enable Australia to acquire three in-service VCS instead of a mixture of new and in-service VCS variants.”

This decision comes at a time when U.S. shipbuilders are having trouble meeting production targets. The U.S. Navy now has 24 Virginia-class submarines, but shipyards are finding it hard to build two new submarines each year as planned.

Questions continue in Washington

Some U.S. observers have criticized the submarine transfer, saying Washington should focus on rebuilding its own naval fleet before sending nuclear-powered submarines abroad.

Despite these concerns, the administration has continued to support the AUKUS agreement, seeing it as an important security partnership in the Indo-Pacific.

AUKUS was established in 2021 to strengthen military cooperation among the three allies amid growing competition in the region. China has often criticized the agreement, warning it could raise military tensions and lead to more weapons in the area.

Undersea drone program moves toward deployment

Along with the submarine announcement, AUKUS partners also shared updates on their work to develop advanced unmanned undersea vehicles.

Hegseth said the first systems should start entering service in 2027. This project is part of AUKUS Pillar Two, which focuses on new technologies like artificial intelligence, quantum computing, cyber systems, hypersonics, and undersea capabilities.

“The signature project will deliver a suite of highly adaptable multi-mission UUV payloads designed to support undersea operations and maintain our collective advantage in the maritime domain,” Hegseth said.

The three governments said these drones will boost reconnaissance and strike capabilities and will also support anti-submarine warfare, mine-clearing, electronic warfare, and coastal missions.

British Defense Secretary John Healey highlighted the systems’ role in protecting critical underwater infrastructure.

“This will rapidly give our forces the very most advanced battlefield technologies as together we produce a range of cutting-edge sensors and weapons systems for undersea drones,” said Britain’s Defense Secretary John Healey.

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