An Israeli navy submarine passes just off Haifa as children swim off the beach
AFP

The federal government is granting a whopping AU$127 million in funding to conduct planning, early-stage design, feasibility assessments, and initial preparatory work for the establishment of a major defense precinct at Henderson Shipyard in Western Australia (WA).

The new precinct will be capable of servicing nuclear-powered submarines and building warships, creating around 10,000 high-tech jobs. The newly proposed precinct, which will likely cost billions in the next 20 years, will be an important landmark in WA's history, as it will offer continuous shipbuilding support to the government, according to a Defense Ministry statement.

The project comes on the heels of the Albanese government's announcement last year of a strategic partnership between defense and Austal Limited at Henderson.

The project will represent a major milestone on the AUKUS pathway, as Australia is taking significant strides towards developing its homegrown conventionally-armed nuclear-powered submarine fleet.

The defense precinct at Henderson Shipyard will help in the construction of new landing craft for the Australian Army and general-purpose frigates for the Navy -- a move that will better empower the defense force to address the country's strategic situations, the statement read.

The Albanese government has also decided that the precinct will serve as the central location for depot-level maintenance and contingency docking for Australia's new conventionally-armed, nuclear-powered submarine fleet.

The project will host U.K. and U.S. nuclear-powered submarine rotations in WA from 2027 and at least one dry dock will be created to support this initiative, despite concerns from security experts over the planned timetable.

Defense Minister Richard Marles said the total estimated cost of the project still remains unknown.

"This represents the most significant defense industry offering to Western Australia since Federation," he told Australian Associated Press.

The precinct will emerge as a major engine of economic growth, competing with the resources' industry in terms of employment and economic activity, according to WA Premier Roger Cook.