Australia's nuclear submarine plan to cost up to $245 bln by 2055 -defence official

Australia's nuclear-powered submarine programme with the United States and Britain will cost Australia up to A$368 billion ($245 billion) by 2055, a defence official told Reuters on Tuesday. U.S. President Joe Biden, Australian Prime Minister Anthony Albanese and British Prime Minister Rishi Sunak on Tuesday unveiled details of a plan to provide Australia with nuclear-powered attack submarines, a major step to counter China's ambitions in the Indo-Pacific.

Australia's nuclear-powered submarine programme with the United States and Britain will cost Australia up to A$368 billion ($245 billion) by 2055, a defence official told Reuters on Tuesday.

U.S. President Joe Biden, Australian Prime Minister Anthony Albanese and British Prime Minister Rishi Sunak on Tuesday unveiled details of a plan to provide Australia with nuclear-powered attack submarines, a major step to counter China's ambitions in the Indo-Pacific. Albanese said the programme will result in an A$6 billion ($4 billion) investment in its industrial capability over the next four years.

"This will be an Australian sovereign capability - built by Australians, commanded by the Royal Australian Navy and sustained by Australian workers in Australian shipyards," Albanese said in San Diego, California. The Australian government's funding for the programme will come to about 0.15% of its gross domestic product per year, Albanese said, adding the plan will create around 20,000 jobs over the next 30 years.

The new AUKUS submarines will be built in the state of South Australia, where A$2 billion will be spent on infrastructure, while the naval base in Perth, set to become the base for the new submarine fleet, will be upgraded. ($1 = 1.5006 Australian dollars)