According to officials from the Australian Submarine Agency, discussions regarding modifications to the AUKUS agreement commenced about 18 months ago.
The recent updates shared over the weekend indicate that Australia will acquire three second-hand submarines instead of the previously planned two second-hand and one new vessel.
During Senate estimates hearings, it was revealed that the submarines Australia intends to purchase will be approximately six years old and are expected to have a service life of 30 to 33 years.
Engagements between Australian and American officials focused on amending the AUKUS pact began in early 2022, leading to the announcement last weekend regarding the acquisition of three Virginia-class submarines in the 2030s.
This adjustment marks a significant alteration in the AUKUS ‘optimal pathway’ since its establishment in 2023.
The Australian government has emphasized that opting for three ‘in-service’ submarines has always been the preferred strategy, citing the operational advantages of managing three similar submarines.
During the Senate estimates session, Vice-Admiral Jonathan Mead from the Australian Submarine Agency was questioned about the timeline of discussions with the US regarding potential changes. He confirmed that these discussions began at the start of last year.
Vice-Admiral Mead noted that while Australia had secured the best available agreement in 2023, discussions about transitioning to three ‘in-service’ submarines have been ongoing.
He explained that there were limitations faced by the US in 2023 that prevented the agreement to sell three in-service submarines, a situation that has since evolved.
“What was available to us then was the optimal pathway,” he remarked, adding that Australia has been collaborating with the US for over a year to explore the possibility of acquiring in-service submarines as the US’s industrial capabilities expanded.
Defence Minister Richard Marles stated that the switch to second-hand submarines would result in cost savings, as both the purchase and maintenance of an in-service submarine are less expensive compared to acquiring a new one.
When questioned about the financial implications of this change, Marles indicated that while the savings would be significant, they would not drastically alter the overall costs associated with the AUKUS program.
“It will be significantly cheaper, that will help,” Marles commented. “It’s a useful contribution to saving money in terms of the overall program, but across the life of the program this doesn’t fundamentally change the cost of what we are seeking to do here.”
Moreover, officials from the Australian Submarine Agency provided additional information regarding the Virginia-class submarines set to be purchased starting in 2032. They indicated that the submarines will be delivered to Australia approximately six years into their lifecycle after undergoing substantial maintenance in the US. These submarines are expected to remain operational for over 20 years under Australian management.
