South Australia is cementing its position as the heart of Australia’s submarine construction, with the Albanese and Malinauskas Labor Governments committing billions of dollars to the state over the coming decades.
The Albanese Government today announced a $3.9 billion initial investment to deliver the new Submarine Construction Yard at Osborne, a move described by Prime Minister Anthony Albanese as “critical to delivering Australia’s conventionally-armed, nuclear-powered submarines.” He added,
“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.”
The Osborne yard is set to become a sprawling facility with three core areas: fabrication, outfitting, and a dedicated zone for consolidation, testing, launching, and commissioning. Australian Naval Infrastructure (ANI) estimates the project will see around $30 billion invested over the next decades, creating nearly 10,000 jobs in South Australia alone.
Deputy Prime Minister Richard Marles highlighted the scale of the undertaking, saying, “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.”
He emphasised that the combination of infrastructure and workforce development would ensure the state has the skills to sustain submarine production for decades.
Construction will be unprecedented in scale. The Fabrication Hall alone will stretch 420 metres, more than twice the length of Adelaide Oval, while structural steel usage will reach 126,000 tonnes – the equivalent of 17 Eiffel Towers. Workers are expected to log 66 million man hours, 44 times the effort invested in the existing Osborne South project.
Premier Peter Malinauskas described the initiative as a “watershed moment” for South Australia.
“At least $30 billion will be invested at Osborne constructing the shipyard. That investment has already started flowing and is only set to grow.”
He noted that further billions will be spent on the complex task of building nuclear-powered submarines, delivering thousands of highly skilled, well-paid jobs.
Preparatory works are already underway. ANI recently completed Eurimbla Way, a new link road connecting Pelican Point Road to the shipyard, ensuring secure access for thousands of workers. Around 500 South Australians are currently involved in building the Skills and Training Academy (STA) campus and Production Demonstration Facilities, which will train up to 1,000 learners annually when it opens in 2028.
Malinauskas stressed the broader benefits for the state:
“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.”
The Submarine Construction Yard, coupled with the South Australian Defence Industry Workforce and Skills Action Plan, which has allocated $300 million to workforce development, marks a long-term commitment to positioning South Australia at the forefront of advanced defence manufacturing.
“This is just the beginning,” Malinauskas said.
“The scale of the work coming our way is difficult for most people to comprehend, but it will transform our economy and workforce for decades to come.”
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