Australia gets nuclear-powered subs in AUKUS deal


Briefly: On Monday the leaders of Australia, the UK, and the US revealed further details of the AUKUS deal, a 2021 trilateral tech and security pact that will enable Australia to acquire nuclear-powered submarines. 

The deal has three stages

  1. The UK and US will send a rotational force of submarines to Australia from 2027 
  2. The US will sell Australia at least three Virginia-class submarines in the 2030s, and
  3. The partners will build and deploy the SSN Aukus in the 2040s, a new class of nuclear-powered submarine rigged out with both UK and US tech.

What’s so good about nuclear-powered subs? Mechanically, they don’t need to refuel or resurface. So hiding underwater for lengthy stretches, they can theoretically be anywhere, anytime. And this forces adversaries to think twice.

And the cons? Because we’re talking about submarines and not Subarus, the estimated price tag for Canberra is $245B (USD) over 30 years. 

The initial 2021 AUKUS announcement also irked some of Australia’s neighbours who felt ambushed and uneasy about the deal (reactions seem more muted this time around).

Meanwhile, China says AUKUS is “walking further and further down the path of error and danger”. Though Australia says it’s just responding to China’s own military build-up (including 12 new nuclear powered and armed subs in the past 15 years alone). 

Intrigue’s take: US president Joe Biden says AUKUS will “enhance the stability of the Indo-Pacific amid rapidly shifting global dynamics”. Translation: he wants to build up Western military capabilities in the region to deter Beijing. 

But history teaches us that deterrence is a high-stakes game. It can be (mis)interpreted in other capitals as a threat. They respond accordingly. Next thing you know, you’ve got an arms race. Then an incident. Then a war.  

Washington is mindful of this risk: just look at its constant references to the need for ‘guardrails’ with China. But China’s opaque system means its intentions are often less clear.

Also worth noting: 

  • Australia will become the seventh country to operate nuclear-powered subs, and the first allowed to buy a US Virginia-class sub. 
  • AUKUS will be the single biggest investment in Australia’s defence capabilities in the country’s history. 
Latest Author Articles
The geopolitics of the next Dalai Lama

There’s nothing new about faith leaders holding political sway. But one such leader just caught our attention with his latest book published this week — specifically, the Dalai Lama mentions that his successor will be born outside China. First, a quick recap: the Dalai Lama (‘Ocean of Wisdom’) is the traditional religious and political leader of Tibetan Buddhism, which folks have […]

14 March, 2025
US-Ukraine talks produce ceasefire proposal

US and Ukrainian officials have just wrapped their peace talks in sunny Saudi Arabia, and we’re sure you’ve got questions, so let’s get into it. First, to clarify, these peace talks were about peace between Ukraine and its Russian occupiers, though you’d be forgiven (and arguably a little right) for assuming this was also about patching […]

12 March, 2025
The Low Earth Orbit (LEO) satellite frenzy is here

We’re not a finance newsletter (we don’t own enough Patagucci vests to qualify), but we do enjoy scrolling through stock tickers.  That’s how we noticed some recent movements around Eutelsat, a Franco-British Low Earth orbit (LEO) satellite operator that’s in talks with the EU to ramp up its presence in Ukraine.  Over the past four days, the […]

7 March, 2025
Shots fired! The ‘Great Trade War’ is back

And so The Great Trade War™ is on. You’ve probably already heard endless hot takes from folks dressed in shirts with collars more rigid than your uncle Rob on the dance floor, so let’s keep this one short (and our collars in an effortless kind of linen ruffle). Here’s what you need to know. Trump’s […]

5 March, 2025