IRIA News

Australia plans to carry out one of the largest naval overhauls since World War 2 by spending over $35 billion over the next 10 years. The naval buildup plan was unveiled by the Australian government in an official statement.

Australian Defence Minister Richard Marles said on February 20, 2024, that the government’s plan would eventually increase the navy’s surface combatant fleet to 26 from 11. “At the heart of that will be building six Hunter-class frigates at the Osborne Naval Shipyard in Adelaide. This will see the first of those ships delivered in 2034.” Additionally, he announced the procurement of 11 new general-purpose frigates and six large optionally crewed surface vessels (LOSVs), which are currently in development in collaboration with the United States.

The plan was released after the Australian government published a Defense Strategic Review; an independent review led by a retired U.S. Navy admiral. The review found that “the current and planned surface combatant fleet is not appropriate for the strategic environment we face.” The review recommended that the Australian Navy should bolster its “lethality – including through its surface fleet and conventionally-armed, nuclear-powered submarines,” adding that this strategy should be supported by an ongoing naval shipbuilding program.

The declassified version of the review advised the Australian government to increase defense spending beyond the current level of 2% of gross domestic product. It also suggested enhancing the Australian Defense Force’s capability to effectively target distant objectives and to domestically produce munitions.

Key Highlights of 10-year naval plan

• Total cost over the next 10 years is $35.25 billion
• Royal Australian Navy to boost its fleet of major surface warships to 26 from 11
• The vessels are scheduled to be inducted by the mid-2030s

Australia’s naval expansion

According to a government statement, the Royal Australian Navy would expand its fleet of major surface warships bringing the total number up to 26 in the next ten years.

The new surface vessels will be deployed alongside a fleet of nuclear-powered submarines that Australia intends to construct under the AUKUS agreement with the United States and the United Kingdom. The initial three submarines are also expected to be delivered in the early part of the next decade.

Prime Minister Anthony Albanese said his government commissioned the review to assess whether Australia has the necessary defense capability, posture, and preparedness to defend itself in the current strategic environment. “We support the strategic direction and key findings set out in the review, which will strengthen our national security and ensure our readiness for future challenges,” Albanese said.

“A strong Australia relies on a strong navy, one that is equipped to conduct diplomacy in our region, deter potential adversaries, and defend our national interests when called,” Australian Chief of Navy Vice Admiral Mark Hammond said in the statement.

“The size, lethality, and capabilities of the future surface combatant fleet ensure that our navy is equipped to meet the evolving strategic challenges of our region,” he added.

Breakdown of Australia’s naval procurements

• Six Hunter-class frigates
• 11 general-purpose frigates to replace the ageing ANZAC-class ships
• Three air warfare destroyers
• Six state-of-the-art surface warships that do not need to be crewed.
• Deployment of Tomahawk missiles on some ships to enhance long-range strike capabilities.

Australian Defense Industry Minister Pat Conroy said that it was “a good day for the Australian Defence Force and a great day for the Australian naval shipbuilding industry.” He added that “we are delivering a larger, more lethal Navy sooner, and that means continuous naval shipbuilding work for our skilled workers throughout the country, particularly in Adelaide and Perth.”

Further recommendations from the Defense Strategic Review 2023 advise enhancing the force’s capacity to operate from Australia’s northern bases and fostering stronger defense partnerships with key nations in the Indo-Pacific region, including India and Japan.

The review highlighted that China’s military expansion “is now the largest and most ambitious of any country” since World War II. It pointed out that this expansion is happening amid a lack of “transparency or assurance to the Indo-Pacific region of China’s strategic intent.”

Considering these recommendations, the Australian government immediately plans to divert at least $5.2 billion of its defense spending budget to reflect new priorities. The Australian government plans to take the funds out of the military spending and divert them to the procurement of naval and air defense equipment.

Under the new priorities, Minister Conroy said the number of ordered infantry fighting vehicles has been reduced from 450 to 129. The funds saved from these vehicles and the cancellation of a second regiment of self-propelled howitzers will be allocated to expedite the acquisition of U.S. HIMARS rocket systems, which have demonstrated effectiveness in the ongoing conflict in Ukraine.