The federal government has formally signed a key contract with a French company to build 12 submarines in Australia.
Under the 50-billion-dollar deal, the subs will be built in Adelaide and generate more than 2,000 jobs a year.
It follows drawn-out negotiations between the two countries.
Prime Minister Scott Morrison says the new fleet will help underpin Australia’s security and prosperity for decades.
“As a land girt by sea, as our national anthem proclaims, a great Royal Australian Navy is what is necessary – and what that means is ensuring that we’re at the front of the pack when it comes to the latest naval vessels and firepower,” says Mr Morrison.