SA’s Premier says the build of nuclear-powered submarines at Osborne can continue “full steam ahead” after the AUKUS pact received President Trump’s blessing at a long-awaited meeting with the Australian Prime Minister overnight.
Fresh confidence around the future of the nuclear submarine program in South Australia has been injected into the state, after US officials spoke positively of the AUKUS program overnight.
The program – a trilateral agreement between the United States, Australia and United Kingdom – would see South Australia build conventionally-armed, nuclear-powered submarines at Osborne.
At a meeting with the Australian Prime Minister Anthony Albanese at the White House, US President Donald Trump publicly backed the AUKUS agreement.
The two leaders also signed an agreement on rare earth and critical minerals during a bilateral lunch in the White House cabinet room.
“We’ve worked on this long and hard, and we’re starting that process right now, and I think it’s moving along very rapidly, very well,” he told reporters.
The more than $300 billion agreement had been under review by the US Defense Department to ensure it aligned with the “America first” agenda of Trump’s administration. The review is expected to be released before the end of the year.
Asked about the submarine deal, Trump said of Australia “they’re getting them”, in relation to the agreement that Australia would also receive three US-made Virginia Class submarines with an option to buy two more.
South Australian Premier Peter Malinauskas said the blessing was a “strong endorsement”.
“In South Australia, work on AUKUS is proceeding full steam ahead,” he said.
“This is undoubtedly a partnership that is in the interests of each of the three nations involved.”
South Australia was expected to benefit from the AUKUS pact, with up to 4000 people to be employed to design and build the infrastructure for the submarine construction yard at Osborne.
A further 4000 to 5500 jobs would then come online when the submarine build program reaches its peak, the state government said.
Libby Day, the CEO of the Defence Teaming Centre – the peak SA-based defence industry support organisation – said Trump’s comments were “the strongest endorsements to date on the AUKUS initiative”, and called for additional defence spending.
“We have to respond positively and decisively as the Defence State and as a nation,” Day said.
“With no uplift in defence spending in sight, we must be as efficient as possible with what is committed and ensure that Australian, sovereign businesses, ready to play their part, are prioritised.
“Meeting our obligations and realising opportunities will require funding and prioritisation now. We look forward to the revised Defence Industry Development Strategy (DIDs) in early 2026, and a renewed focus on sovereign defence industry/supply chains. We must take an Australia first position too while providing opportunities to support overseas supply chains.”
Day said SA’s role in the AUKUS partnership “should never be underestimated”.
“It will see strong relationships being forged between SA companies and their counterparts in the US and the UK.”
Speaking to ABC Radio, the Premier said the comments brought “a degree of relief, but there is still more work to be done”.
“It would be an absurd proposition for an island continent such as ours, in our particular part of the world, to not have a submarine capability,” the Premier said.
“We need one into the future, and the AUKUS agreement and the optimal pathway which followed it provides us the best opportunity for us to have a sovereign capability as a nation.”