The adjustment to the landmark defense agreement was announced on the sidelines of the Shangri-La Dialogue security forum in Singapore by Australian Deputy Prime Minister and Defence Minister Richard Marles, U.S. Defense Secretary Pete Hegseth and British Defence Secretary John Healey.

In a joint statement, the three ministers said the revised arrangement would simplify Australia’s acquisition process while reducing logistical and maintenance complexities.

“The deputy prime minister and secretaries welcomed the proposed approach to streamline Australia’s acquisition of Virginia-class submarines, simplifying supply chain management, operational and maintenance requirements, and maximizing cost efficiencies,” the statement said.

Under the revised plan, Australia will receive three operational Virginia-class submarines from the U.S. Navy rather than the previously anticipated mix of two used vessels and one newly built submarine.

The change reflects ongoing production challenges within the United States naval shipbuilding sector. The U.S. Navy currently operates 24 Virginia-class submarines, but American shipyards have struggled to achieve construction targets of two new submarines annually.

The AUKUS partnership, unveiled in 2021 by Australia, the United States and the United Kingdom, is designed to strengthen security cooperation in the Indo-Pacific region and provide Australia with nuclear-powered submarine capabilities for the first time.

The submarine program remains the centerpiece of Australia’s long-term defense strategy amid growing strategic competition in the Indo-Pacific. Government projections estimate the initiative could cost up to A$368 billion (US$235 billion) over three decades.

The revised arrangement may also help address concerns raised by some U.S. lawmakers and defense analysts who have questioned whether Washington should transfer advanced submarines to allies while facing pressure to expand its own naval fleet.

Officials from the three countries did not indicate any changes to the broader objectives of the AUKUS partnership, which also includes cooperation on advanced military technologies, cybersecurity, artificial intelligence and undersea capabilities.

The announcement came as defense leaders from around 45 countries gathered in Singapore for the annual Shangri-La Dialogue, where maritime security, military modernization and regional strategic competition dominated discussions.

Australia has argued that acquiring nuclear-powered submarines is essential to enhancing its long-range deterrence and operational capabilities in an increasingly contested Indo-Pacific security environment.