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Australia commits nearly $27 billion to build three advanced Hunter-class frigates

The Australian government has earmarked close to $27 billion for the first three Hunter-class frigates, a project plagued by delays and cost overruns but touted as a premier anti-submarine platform.

Australia’s defence budget now dedicates roughly $27 billion to the first three Hunter-class frigates, covering both hull construction and the expansion of the Osborne shipyards in South Australia. The ships, based on BAE Systems’ Type 26 design but fitted with an Australian-made CEA phased-array radar and the US-origin Aegis combat system, are promoted as the most advanced anti-submarine vessels globally. Pat Conroy highlighted that the project suffered from overly ambitious specifications that ignored cost and schedule impacts, yet maintains the investment will pay off.

Analysts like Marcus Hellyer criticize the attempt to merge frigate and destroyer capabilities, questioning the ships’ relevance in modern high-risk naval environments. Proponents, including Alessio Patalano, argue that despite the price tag, no cheaper alternative can deliver the required capability. The effort also seeks to re-establish a permanent naval shipbuilding base in Adelaide, supporting future AUKUS-class submarine construction.

Why it matters

The spending determines Australia’s naval readiness and industrial base amid rising Indo-Pacific security challenges.

In this story

Hunter-class frigate$27 billionanti-submarine warfareAegis combat systemCEA radardefence procurementAdelaide shipyardsAUKUS submarinesnaval modernization
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