Australia's $500 Million Commitment: Strengthening AUKUS Ties

Australia has made a $500 million payment to the U.S. as part of the AUKUS nuclear submarine deal. This demonstrates Australia's commitment as a key security partner. Both countries aim to enhance defense in the Indo-Pacific region, with significant investments planned in U.S. submarine capacity and Australian defense infrastructure.


Devdiscourse News Desk | Updated: 07-02-2025 17:07 IST | Created: 07-02-2025 17:07 IST
Australia's $500 Million Commitment: Strengthening AUKUS Ties

Australia has initiated its first $500 million payment to the United States as part of the AUKUS nuclear submarine agreement, signaling a strong partnership ahead of a crucial defense meeting in Washington.

Australian Defence Minister Richard Marles emphasized that the payment underscores Canberra's commitment as a reliable security ally. Marles will be the first foreign official hosted by U.S. Defence Secretary Pete Hegseth, and the two are expected to discuss regional security and the expanding U.S. military presence in Australia.

Australia plans to double its annual defense budget to A$100 billion over the next decade while contributing $3 billion to enhance U.S. submarine industry capabilities. The collaboration includes the sale of Virginia-class submarines to Australia and advancements towards a new AUKUS-class submarine. Secretary of State Marco Rubio and Australia's Foreign Minister Penny Wong confirmed earlier positive dialogues regarding the deal.

(With inputs from agencies.)

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