Arms race in the Pacific: Australia injects billions to upgrade its naval infrastructure

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In a development that reflects the intensification of the arms race in the Indo-Pacific region, Australia has announced a massive defense spending package worth billions of dollars to modernize its naval infrastructure and strengthen its capacity to host and operate future nuclear-powered submarines.

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On Sunday, the Australian government unveiled a 12 billion Australian dollar (8 billion US dollar) investment plan to upgrade shipyard facilities in Perth, Western Australia, in preparation for the arrival of its future nuclear submarine fleet. Defense Minister Richard Marles stated that the investment, spread over ten years, will include equipping the Henderson defense precinct with high-security dry docks for submarine maintenance, as well as facilities for building landing craft and Japanese-designed Mogami-class frigates.

He noted that the total cost of the project could ultimately reach 25 billion Australian dollars.

The AUKUS agreement

This move, part of the AUKUS pact with the United States and the United Kingdom, underscores Canberra’s strategic shift to reshape its defense posture in response to mounting regional challenges, foremost among them China’s expanding military presence and escalating tensions in the Pacific.

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The agreement includes the acquisition of three US-built Virginia-class submarines over the next fifteen years, alongside plans for the eventual domestic production of nuclear-powered submarines.

The investment aims to bridge critical gaps in Australia’s naval infrastructure, as the country currently lacks advanced facilities capable of maintaining and operating nuclear submarines.

The “Ghost Shark”

At the same time, the Australian government announced last Wednesday a major 1.1 billion US dollar defense project to build a fleet of unmanned attack submarines known as the “Ghost Shark.”

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Marles confirmed that these submarines will gradually enter service starting in January. They are designed for intelligence, surveillance, and direct strike missions, benefiting from their ability to dive up to 6,000 meters and remain at sea for ten consecutive days without a human crew.

Anduril Australia secured a major industrial contract worth 1.7 billion Australian dollars to develop and maintain these unmanned submarines, under a long-term partnership with the Ministry of Defence.

An escalating arms race

Australia is seeking to more than double its fleet of warships from 11 to 26 over the next decade, a goal reflected in a wave of unprecedented defense contracts.

Last month, Canberra signed the largest defense deal in its history with Japan to purchase 11 Mogami-class frigates for 6 billion dollars.

These mounting investments highlight the depth of Australia’s security concerns in the Indo-Pacific, amid China’s growing military influence and rising regional tensions.

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