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US-Australia Sub Deal at Risk: Contract Hold-Up Threatens AUKUS
Description
Contract Hold-Up Threatens Australias AUKUS Submarine Deal: US Navy Struggles to Meet Production Goals
The US Navy is grappling with a significant production challenge, aiming to increase submarine output from 1.15 to 2.33 per year to meet demands from both the US and Australian fleets. This urgency is due to the AUKUS submarine deal, where Australia plans to acquire at least three Virginia-class nuclear subs from the US in the 2030s. However, the contract for the Pentagon has not been signed, more than two years after Congress approved it, causing delays and backlogs. Congressman Joe Courtney, who represents a key shipbuilding district, criticizes the Trump administration for slowing down the process. Australia has already invested over four billion dollars to expedite the deal. Despite the challenges, Pentagon officials remain optimistic, with production rates now at about 1.7 subs per year, making the goal achievable with momentum.
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