SYDNEY (AP) — Australia is set to provide 4.6 billion Australian dollars ($3 billion) to British industry to support the construction of nuclear-powered submarines and ensure its new fleet arrives on time, the two countries said Friday.

United Kingdom Defense Minister Grant Shapps said the submarine program was expensive but necessary.

The 10-year deal announced at an annual ministers’ gathering will boost capacity at the Rolls-Royce factory in Derby, U.K., to build the nuclear reactors that will propel the submarines to be built by BAE Systems in Adelaide, Australia.

Australia Defense Minister Richard Marles said the agreement showed that the nuclear submarines program would be fulfilled and would create new production capability for the AUKUS partners, referring to the grouping of Australia, the U.K. and the United States.

“These are big foundational decisions which demonstrate that the pathway to Australia acquiring a nuclear-powered submarine capability under the banner of AUKUS is happening, and the result of that right here is going to be the most advanced manufacturing in the nation and one of the most advanced manufacturing production lines in the world,” Marles told reporters Friday at the Osborne shipyard in Adelaide.

“These steps to grow Australia’s submarine construction and maintenance capability are critical to the AUKUS partnership, expanding trilateral industrial capacity and building the collective resilience of AUKUS partners to produce and sustain conventionally armed nuclear-powered submarines for decades to come.”

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