The Osborne Submarine Construction Yard

Where Australia's own nuclear-powered submarines will be built, and the workforce the Government says it will need.

Explainer · Updated 26 October 2026

Australia's SSN-AUKUS submarines will be built in Adelaide, at a new Submarine Construction Yard at Osborne [1][3]. It is the largest construction job in the AUKUS plan inside Australia. This page explains where the yard is, who will build the submarines, what work has started, and the official figures on jobs and skills.

Where it is

The Australian Submarine Agency (ASA) says the site is north of the existing Osborne Naval Shipyard on the Lefevre Peninsula, about 19 km north of Adelaide [1].

The ASA says Australia will begin building its first SSN-AUKUS at Osborne by the end of this decade [1]. The 2023 White House fact sheet said the same about the start of construction, and that the first Australian-built SSN-AUKUS is planned for delivery in the early 2040s [3].

Who is building what

There are two separate jobs: building the yard, and building the submarines in it.

The yard. Australian Naval Infrastructure Pty Ltd (ANI) is the ASA's design and delivery partner for the yard [1].
The submarines. A parliamentary committee reported that in March 2024 the Government selected ASC Pty Ltd and BAE Systems Australia to build Australia's SSN-AUKUS submarines at Osborne [5].

The UK Government has said some components for Australia's boats will be made in the UK [7]. Our SSN-AUKUS explainer covers the design.

Work so far

First enabling works (Dec 2023). A Defence ministers' release of 24 December 2023 said ANI had signed a contract with Shamrock Civil to build a staging and laydown area for the future construction workforce [2].
State planning approval. The ASA says the South Australian Minister for Planning approved the development, with conditions, on 4 December 2025 [1].

Approvals timeline

The ASA lists these steps for the yard's Strategic Assessment under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) [1]:

Date	Step
24 Nov 2023	Strategic Assessment agreed
25 Mar 2024	Terms of reference agreed
3 Feb 2025 and 17 Mar 2025	Draft report released for comment
Dec 2025	Final report
30 Jan 2026	Endorsement
19 Feb 2026	Approval decision notice

What it costs

At the May 2026 AUKUS defence ministers' meeting, ministers referred to Australia's "initial down payments of AUD 3.9 billion to deliver the new Submarine Construction Yard in South Australia" [6].

The Prime Minister's March 2023 release expected about $2 billion of investment in South Australia over the first four years of the plan [4]. These are separate figures released at different times; see our budget explainer for how the official numbers fit together.

Jobs forecasts

Official jobs figures for Osborne come from the December 2023 ministerial release [2]:

At peak, up to 4,000 workers will be employed to design and build the yard's infrastructure.
A further 4,000 to 5,500 direct jobs are expected to build the submarines in South Australia when the program peaks.

The 2023 White House fact sheet said the enterprise would "almost double the previously forecasted demand for personnel in Australia's submarine shipyard" [3].

Across the whole program, the Government has estimated around 20,000 direct jobs over 30 years [4].

Workforce and skills programs

Building nuclear-powered submarines needs skills Australia has not needed before. Official statements describe several programs:

University places. More than 4,000 Commonwealth supported places in STEM courses were allocated across 16 Australian universities to help grow the AUKUS workforce [2].
Training overseas. Australia intends to send hundreds of workers to US and UK shipyards, and scientists and engineers to US and UK technical facilities, for specialised training [3]. The 2024 US National Defense Authorization Act authorised Australian contractors to train in US shipyards [5].

A parliamentary committee recorded Defence and the ASA acknowledging the challenge of building the workforce required over 30 years, while noting that the US and UK are also expanding their own industries [5].

Key terms

SCY. The Submarine Construction Yard, the ASA's name for the expanded Osborne site where SSN-AUKUS will be built [1].
ANI. Australian Naval Infrastructure Pty Ltd, the ASA's design and delivery partner for the yard [1].
ASC. ASC Pty Ltd, selected with BAE Systems Australia to build the submarines [5].
Strategic Assessment. The environmental assessment of the yard under the EPBC Act [1].
Direct jobs. Jobs working on the program itself, as used in the Government's forecasts [2][4].

Where Osborne fits

Osborne is the final phase of the Optimal Pathway. Before the first Australian-built boat arrives, Australia is due to host rotating submarines at HMAS Stirling and to buy Virginia-class submarines from the US.

Frequently asked questions

Where will Australia build its nuclear-powered submarines?

At the Submarine Construction Yard at Osborne, on the Lefevre Peninsula about 19 km north of Adelaide [1].

When does construction start?

The ASA says Australia will begin building its first SSN-AUKUS at Osborne by the end of this decade [1].

How many jobs will the yard create?

Up to 4,000 workers at peak to build the yard, and a further 4,000 to 5,500 direct jobs at peak to build the submarines, according to a December 2023 ministerial release [2].

Sources

Checked 26 Oct 2026. AUKUS Defense is an independent site, not affiliated with any government. Plans and figures may change; check the sources above for the latest.