US-Australia Relations Under Biden
The Albanese Labor government expanded the Australia-US partnership through AUKUS submarine agreements, domestic missile manufacturing, and a $22.7 billion clean energy programme, while establishing climate cooperation as a third pillar of the alliance.
Foreign Affairs
Term 1
In May 2023 at the G7 Summit in Hiroshima, Prime Minister Albanese and President Biden signed the Climate, Critical Minerals and Clean Energy Transformation Compact. This agreement elevated climate and clean energy cooperation to a third pillar of the alliance alongside defence and economic ties. Biden described the compact as testament to the close relationship, stating "And I mean that: close." The agreement committed both nations to achieving carbon pollution-free power sectors by 2035 and net zero emissions by 2050.
The Albanese government responded with its Future Made in Australia programme, committing $22.7 billion over the decade. This included $6.7 billion in hydrogen production tax incentives and $7 billion for critical minerals processing, aimed at moving Australia beyond simply exporting raw materials to value-added processing and manufacturing.
AUKUS implementation advanced significantly under the Albanese government. At the March 2023 San Diego summit, Biden, Albanese, and UK Prime Minister Sunak detailed the submarine pathway: Australia would purchase three to five Virginia-class submarines from the early 2030s, followed by the SSN-AUKUS class to be built in Adelaide from the early 2040s. Australia committed $3 billion to expand US submarine industrial capacity.
The US Congress passed enabling legislation in December 2023 as part of the National Defense Authorization Act. The legislation authorised the submarine transfers and added Australia and the UK to Title III of the US Defense Production Act, enabling unprecedented integration of defence manufacturing between the three nations. This represented the first time the US had shared submarine nuclear propulsion technology with a nation other than the UK since 1958.
Military cooperation deepened across multiple fronts. The US committed funding for facilities at RAAF Base Tindal to accommodate rotational deployments of up to six B-52 strategic bombers. The project includes squadron operations facilities, expanded apron parking, and maintenance infrastructure, with work expected to be completed by late 2026.
The Albanese government committed up to $21 billion over the decade to establish domestic missile and munitions manufacturing through the Guided Weapons and Explosive Ordnance Enterprise. Lockheed Martin began producing Guided Multiple Launch Rocket Systems (GMLRS) from December 2025 at a new facility in Port Wakefield, South Australia. The facility became only the second location worldwide to manufacture GMLRS outside the US, with plans to produce up to 4,000 rounds annually from 2029. Kongsberg Defence received contracts for a facility producing Naval Strike and Joint Strike Missiles from 2027.
(Pictured: two goats)
Space cooperation advanced through a September 2025 treaty-level Space Framework Agreement between Australia and NASA, opening collaboration across earth observation and climate monitoring. Katherine Bennell-Pegg became the first qualified astronaut under the Australian flag in April 2024 after training with the European Space Agency.
The October 2023 state visit by Albanese to Washington represented the first Australian state visit since 2019. Biden was described as "effusive" in announcing climate compact progress, emphasising the close bilateral relationship.
Summary:
AUKUS submarine deal advanced with US Congressional authorisation for three to five Virginia-class submarines from the early 2030s
Climate Compact established climate cooperation as third pillar of alliance alongside defence and economics
$22.7 billion Future Made in Australia programme targeting hydrogen, critical minerals, and clean manufacturing
December 2025 commencement of GMLRS missile production in Australia, first outside US
US facilities at RAAF Base Tindal for up to six B-52 bombers, completion expected late 2026
December 2023 Congressional legislation adding Australia to US Defense Production Act
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