What is the Aukus submarine deal between Australia, the UK and the US?

Getty Images A US Virginia-class attack submarine, only partially submerged, sails off the coast of Western AustraliaGetty Images

Australia is set to buy up to five Virginia-class attack submarines from the United States

A multi-billion-dollar submarine deal between the longtime allies – Australia, the UK and the US – has come under the spotlight after the Trump administration said it was reviewing how the deal fits into its much-touted “America First” agenda.

The OKOS security agreement, Australia’s largest ever defense project, is set to play a key role in the country’s ability to replace its aging fleet of Collins-class submarines – and more importantly, its military standing in the region.

The ongoing review is being led by the US Defense Secretary’s senior advisor, Elbridge Colby, who has previously criticized Okos. In a speech last year, he questioned why the United States would give up “these crown jewel assets when we need them most.”

A US Department of Defense spokesman said the review aims to ensure that “this previous administration’s initiative is consistent with the President’s America First agenda.”

The UK and Australia have played down fears that the review would torpedo the deal, with both saying the review is a normal process when a new government takes power.

The agreement is expected to be the focus of talks between US President Donald Trump and his Australian counterpart Anthony Albanese during their meeting in Washington, DC, on Monday.

What is OCOS?

The Aukus deal, described as a trilateral security partnership worth £176 billion (US$239 billion; AU$368 billion) over 30 years, includes two pillars.

The first pillar concerns the supply and delivery of nuclear-powered attack submarines.

Australia will buy three used Virginia-class submarines from the United States from 2032 with an option to buy two more.

After that, the plan is to design and build an entirely new nuclear-powered submarine model for the British and Australian navies.

This assault vehicle will be built in Britain and Australia according to a British design, but will use technology from all three countries.

Australia pledged $3 billion to boost US submarine production rates, and officials said payments were continuing on schedule despite the review.

The second pillar revolves around allies cooperating in their “advanced capabilities.” This includes exchanging military expertise in areas such as long-range hypersonic missiles, undersea robotics, and artificial intelligence.

What is the purpose of the deal?

The deal is believed to be, at its core, about countering China’s growing presence in the Indo-Pacific region, and its role in rising tensions in disputed areas such as the South China Sea.

While none of the allies directly pointed to China as a reason for the deal, the three countries spoke of how regional security concerns have “increased significantly” in recent years.

China condemned the agreement as “completely irresponsible” when it was first announced.

Foreign Ministry spokesman Zhao Lijian said it “seriously undermines regional peace and stability and aggravates the arms race.”

Who negotiated it?

The deal was unveiled in September 2021 by three former leaders: Australian Scott Morrison, UK President Boris Johnson, and US Joe Biden.

The UK reviewed the security agreement last year after Sir Keir Starmer’s Labor government won the general election.

What does Australia gain from it?

For Australia, the deal represents a significant upgrade to its military capabilities. The country is set to become the second country to acquire elite nuclear propulsion technology from Washington, after the United Kingdom.

These submarines will be able to operate farther and faster than the country’s current diesel engine fleet. It also means Australia will be able to carry out long-range strikes against enemies for the first time.

Under the agreement, sailors from the Royal Australian Navy will be sent to US and British submarine bases to learn how to use nuclear-powered submarines.

What do the UK and US gain from this?

Starting in 2027, the agreement will allow both the United States and the United Kingdom to base a small number of nuclear submarines in Perth, Western Australia.

It will also create around 7,000 jobs in Britain, as the new fleet of nuclear-powered submarines is set to be designed and built in the UK.

The benefits to the United States are less clear, but sharing its defense technology could give the country an opportunity to strengthen its presence in the Asia-Pacific region.

Historically, Washington and Downing Street have viewed arming Australia as necessary to maintain peace in a region far from their own.

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