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.

The annual summit, hosted in Singapore and attended by defense ministers, military leaders and security experts from across the Indo-Pacific and beyond, has traditionally provided a platform for senior Chinese officials to outline Beijing’s strategic priorities and engage directly with counterparts from major powers.

This year, however, China did not send Defense Minister Dong Jun. Instead, Beijing dispatched a delegation composed largely of military academics and researchers from the People’s Liberation Army, marking a noticeable departure from its customary high-profile representation.

The absence also meant Dong did not participate in face-to-face meetings with U.S. Defense Secretary Pete Hegseth or defense officials from countries including Australia, Britain, France and Japan.

A centerpiece of previous Shangri-La Dialogues had been a keynote address by China’s defense minister or another senior official outlining Beijing’s views on regional security, military modernization and international affairs. That session was absent from the conference agenda for the second consecutive year.

Speaking during his keynote address, Hegseth noted the absence of his Chinese counterpart and said he hoped future opportunities would arise for direct communication between the two sides on issues where military actions and intentions can be interpreted differently.

Australian Deputy Prime Minister and Defense Minister Richard Marles described China’s limited participation as a missed opportunity for candid dialogue on regional security concerns.

Despite the absence from Singapore, Dong met Hegseth earlier this month during President Donald Trump’s visit to China.

Members of the Chinese delegation downplayed the significance of the minister’s nonattendance. Retired PLA senior colonel Zhou Bo said academic delegations had participated in the forum before, though he acknowledged that this year’s representation was at a comparatively lower level.

Analysts attending the forum suggested Beijing may have sought to avoid difficult questions regarding cross-strait tensions involving Taiwan and the impact of recent military corruption investigations on China’s defense establishment.

Chong Ja Ian said the composition of the delegation raised questions about its authority to speak on behalf of the Chinese government and military leadership.

Some diplomats also suggested Beijing may have wished to avoid a repeat of previous confrontations at the forum. In 2025, Hegseth sharply criticized China’s actions in the Indo-Pacific and urged regional allies to strengthen defense spending, prompting a strong response from Beijing.

This year, Hegseth adopted a more measured tone while still warning against any attempt by a single power to dominate the region. He said no country should be able to impose hegemony over regional security and prosperity, while also noting that relations between Washington and Beijing had improved compared with previous years.

China began regularly sending senior delegations to the Shangri-La Dialogue in 2007 and elevated its participation by dispatching defense ministers on multiple occasions, including from 2022 through 2024. The conference was suspended in 2020 and 2021 because of the COVID-19 pandemic.

Veteran Singaporean diplomat Bilahari Kausikan said the primary purpose of the forum remains maintaining U.S. strategic engagement in Southeast Asia. While Chinese ministerial participation is welcome, he argued, it is not essential to the event’s broader objectives.

Coyle, currently chief of joint capabilities, will replace Lieutenant General Simon Stuart, the government said. Her appointment comes as the Australian Defence Force seeks to increase female representation and address allegations of systemic sexual harassment and discrimination.

Defence Minister Richard Marles described the move as a “deeply historic moment,” adding that Coyle’s leadership would be significant for women serving in the military and those considering enlistment.Coyle, 55, joined the army in 1987 and has held several senior command roles.

Marles said she would also become the first woman to lead any service branch within the ADF.Women currently account for about 21% of ADF personnel and 18.5% of senior leadership positions. The military has set a target of raising female participation to 25% by 2030.

The leadership changes come after a class action lawsuit filed in October alleged the ADF failed to protect thousands of female personnel from sexual assault, harassment and discrimination.

In parallel appointments, Vice Admiral Mark Hammond will become chief of the ADF, replacing Admiral David Johnston, while Rear Admiral Matthew Buckley will take over as head of the navy.