A US Navy review finds the delivery of nuclear-powered submarines to Australia could face a delay of up to three years. 

The setback has been attributed to ongoing delays in the construction of Virginia-class submarines, casting doubts on the ability of the United States to fulfil its commitment to Australia by 2032.

The review, initiated by Secretary of the US Navy Carlos Del Toro in January, reportedly aimed to address shipbuilding concerns that have emerged, particularly the lag in meeting both local demand and the obligations under the AUKUS pact. 

The sale of used Block IV submarines to Australia, scheduled between 2032 and 2035, along with a new Block VII boat in 2038, hinges on the US's capacity to meet its naval requirements.

Deputy Secretary of State Kurt Campbell has acknowledged the naval supply chain challenges as a “substantial focus at senior levels” across the White House, Defence, and the State Department. 

“We have an unprecedented number of submarines in dry dock or requiring servicing. It is clear that supply chains were affected globally, but also specifically for [submarine] projects during COVID,” Campbell remarked during an event at the Centre for New American Security.

The review, led by US Navy acquisition chief Nickolas Guertin and Vice Admiral James Downey, also pointed to the delays in the delivery of the first Columbia-class SSBN and noted that Virginia submarines purchased from fiscal 2014 to 2018 are behind schedule by 36 months. 

Despite these challenges, a performance improvement plan for the Block IV boats promises to shorten future construction timelines.

However, the Biden administration's 2025 defence budget allocation for only one new submarine in the next year, before resuming the plan for two in 2026, has raised questions about meeting these ambitious timelines. 

Dismissing concerns over budget allocations, Dr Campbell says that these adjustments reflect the current realities of shipyard production capabilities, with plans underway for expansion. 

“At the heart of this is the largest increase in investment in the United States submarine program since its inception decades ago,” he told reporters.