The Albanese and Malinauskas Labor Governments are ensuring that South Australia remains the home of Australia's submarine construction, with expenditure projected to be billions of dollars in the state over coming decades.
Today the Albanese Government is announcing it will invest $3.9 billion as a down payment to deliver the new Submarine Construction Yard in Osborne.
While the design process continues, significant investment is critical to delivering Australia's conventionally-armed, nuclear-powered submarines which will create nearly 10,000 jobs across the entire program in South Australia alone.
The Osborne construction yard will comprise three substantive areas, including fabrication, outfitting and further area for consolidation, testing launching and commission.
Australian Naval Infrastructure (ANI) projections show an estimated projected investment of $30 billion over coming decades, to build the construction yard in Osborne.
Enabling works and the Skills and Training Academy (STA) are expected to cost approximately $2 billion and more than $500 million respectively.
Both state and federal governments are strengthening Defence investment in South Australia. This investment complements the existing Collins-class sustainment facilities and Hunter-class shipyard, also located in Osborne.
The total floor area of the new Submarine Construction Yard is expected to be 10 times larger than the existing Osborne South Development project. Construction is expected to use 66 million man hours - 44 times more than Osborne South.
Construction is expected to use 126,000 tonnes of structural steel, equal to the weight of steel in 17 Eiffel Towers.
The Fabrication Hall in Area 1 is 420 metres long, which is 2.5 times the length of Adelaide Oval.
All of these works continue at pace, with future investment decisions to follow as infrastructure needs are further defined, designs mature and licences are progressed across the yard including for consolidation, launch and commissioning facilities.
The total construction costs associated with the infrastructure program will depend on the details of design and commercial delivery arrangements to be negotiated by Australian Naval Infrastructure (ANI) Pty Ltd, as the Government's appointed design and delivery partner for the yard.
ANI is also delivering progress across the precinct with the recent completion of construction of a new link road that will streamline access to the shipyards for thousands of workers.
Eurimbla Way will connect Pelican Point Road in the east with the shipyard and is part of critical supporting infrastructure at the construction yard that will enable a direct route bypassing the existing railway line, ensuring secure access to both current and future shipyards.
Around 170 workers completed Eurimbla Way on time and on budget and it became operational for traffic at the beginning of this week (9 February 26).
More than 500 South Australians are already on the job helping to build the STA Campus and the Production Demonstration Facilities within the Submarine Construction Yard.
Works for the STA Campus began in 2025, with the first students of the Skills and Training Academy to commence in 2028 ensuring a pipeline of skilled workers for decades to come. This Campus will be a world-class training facility, designed to support up to 1,000 learners each year.
This landmark investment will create thousands of jobs in South Australia with at least 4,000 workers who will design and build the submarine construction yard, and around 5,500 workers who will support nuclear-powered submarine production at its peak.
Roles will range from engineers and skilled trades to project managers and logistics specialists.
Development of the Submarine Construction Yard is coupled with the South Australian Defence Industry Workforce and Skills Action Plan, which has committed $300 million to workforce development initiatives aligned with defence industry and the creation of Technical Colleges in South Australia.
Quotes attributable to the Prime Minister, the Hon Anthony Albanese MP
"Together with the Malinauskas Government in SA, we are accelerating AUKUS opportunities to secure Australia's future defence capability and create lasting prosperity and jobs for the state.
"Investing in the Submarine Construction Yard at Osborne is critical to delivering Australia's conventionally-armed, nuclear-powered submarines.
"Labor will always back continuous naval shipbuilding and advanced manufacturing, which is vital to South Australia's economy and long-term growth in local industry."
Quotes attributable to Deputy Prime Minister, the Hon Richard Marles MP
"The Albanese Government is unwavering in its commitment to delivering Australia's nuclear-powered submarine capability under AUKUS. The momentum is real and the scale of what is being achieved at Osborne is extraordinary.
"South Australia is at the centre of one of the most significant defence undertakings in our history. Osborne will be critical to Australia's nuclear-powered submarine program under AUKUS, while supporting continuous naval shipbuilding and sustainment.
"From construction of the submarine yard to delivery of critical infrastructure and the development of a skilled workforce, progress is accelerating. The transformation underway at Osborne shows Australia is on track to deliver the sovereign capability to build our nuclear-powered submarines for decades to come."
Quotes attributable to the Premier of South Australia, the Hon Peter Malinauskas MP
"AUKUS presents a watershed moment for the South Australian economy, and the scale of the work coming our way is difficult for most people to comprehend.
"At least $30 billion will be invested at Osborne constructing the shipyard. That investment has already started flowing and is only set to grow.
"This is just the beginning. That figure only represents the task of building enabling infrastructure. There will be many billions more invested in the incredibly complex task of building nuclear-powered submarines, which will in itself provide for thousands of highly skilled, well-paid jobs for decades.
This work, and the accompanying research and development, presents an opportunity to lift skills, wages and economic complexity, providing a better standard of living for all South Australians.
