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Pentagon Keeps AUKUS Submarine Review Open as Capacity Shortfalls Loom

Officials must determine whether US shipyards can double annual output to meet Australia’s pending submarine orders.

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Overview

  • The Department of Defense launched its formal review of AUKUS Pillar One in June with no set deadline as it examines US industrial capacity.
  • Admiral Daryl Caudle testified the US Navy builds roughly 1.13 Virginia-class submarines per year but needs about 2.0 for US defense and 2.33 to fulfill Australian commitments.
  • Australia has paid $1.6 billion toward its $2 billion pledge to enhance US submarine production capacity, with further payments tied to demonstrable build-rate improvements.
  • Legislation bars transferring Virginia-class boats if they would weaken the US submarine fleet, ensuring domestic requirements are met before any exports.
  • Analysts warn that without doubling capacity, Australia risks a decade-long capability gap until its first domestically built AUKUS submarines are delivered in the early 2040s.