Australia makes second $673 million Aukus payment amid US review

SYDNEY – Australia has paid the United States A$800 million (S$673 million) in the second instalment under the Aukus nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump’s administration.

Australian Prime Minister Anthony Albanese confirmed the latest instalment on July 23, following an initial US$500 million (S$639 million) paid in February.

In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with

nuclear-powered attack submarines

from the early 2030s to counter China’s ambitions in the Indo-Pacific.

Australia committed to spend A$368 billion over three decades in its biggest-ever defence deal.

Canberra is due to pay Washington US$2 billion by end-2025 to support the expansion of American submarine shipyards, Reuters reported in April.

“There’s a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity,” Mr Albanese told national broadcaster ABC.

“As part of that as well, we have Australians on the ground, learning those skills.”

Mr Trump launched a formal review of Aukus in June to examine whether the pact met his “American First” criteria. It will be led by Mr Elbridge Colby, who in the past has expressed scepticism about Aukus.

Australia, which sees the submarines as critical to its own defence as tensions grow over China’s military build-up, has maintained it is confident the pact will proceed.

“We support Aukus,” Mr Albanese said.

“We have an agreement to a treaty level, with our partners, signed, of course, in San Diego with the United States and United Kingdom,” he added.

Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new Aukus-class submarine. REUTERS