Nuclear subs deal closer after passing key US hurdle

The news: Australia is a step closer to having nuclear submarines after key legislation to enable an upcoming multi-billion dollar sale passed the US senate on Thursday.

The numbers: Washington is poised to sell three Virginia-class nuclear submarines — two second-hand and one new — to Australia, with the first sale expected in the early 2030s. As part of the legislation, which has not yet passed the House, Australia will pay $4.6 billion to prop up the US industrial base to keep the subs rolling off the production line. The total deal is expected to cost Australia up to $368 billion.

The context: The sale is a key component of the AUKUS defence pact between Australia, the US and the UK. The AUKUS pact was signed under the former Morrison Liberal government, when it abandoned a $90 billion dollar deal to buy French attack class submarines.

The sale will be the first time the US has sold another nation a nuclear submarine and the second time it has shared nuclear secrets with another country, the first being the United Kingdom.