The US and Australia have broken ground on a $60-million submarine manufacturing facility in Mississippi, with $22 million in Australian funding supporting efforts to expand production capacity for critical submarine components under the AUKUS partnership.
The 38,000-square-foot (3,530-square-meter) facility will manufacture propulsors, propellers, and rotors for multiple submarine and shipbuilding programs.
Australia has committed $3 billion to expanding US submarine production and maintenance capacity, with the first $2 billion received in 2025.
AUKUS is a security alliance between Australia, the UK, and the US.
The investment supports AUKUS Pillar I, which includes plans for the US to sell Virginia-class attack submarines to Australia and help establish an Australian nuclear-powered submarine capability in the early 2030s.
AUKUS
The expansion comes as the US works to increase submarine output and prepare for greater allied cooperation.
In October, Anduril Industries announced a $3.7-billion investment in Arsenal-2, a manufacturing facility planned for Baltimore County, Maryland. The US Navy separately awarded the company a contract worth up to $2.9 billion, tied to production outcomes.
In July 2026, the US awarded contracts worth $76.6 billion for five Columbia-class ballistic missile submarines and nine Virginia-class attack submarines, supporting construction across fiscal years 2025 to 2029.
Earlier, in March, the US State Department approved a potential $1-billion sale of submarine systems and technical support to the UK under the AUKUS partnership. The package covers weapon launch systems, electronics, engineering services, logistics, and program support.