Australia will get access to nuclear submarine technology as part of a landmark security pact with the United States and the United Kingdom.
Prime Minister Scott Morrison on Thursday announced the historic agreement, which also paves the way for Australia's $90 billion French submarine deal to be scrapped.
The new AUKUS trilateral security partnership will allow the three countries to share technology covering cyber security, artificial intelligence, underwater systems and long-range strike capabilities.
Over the next 18 months, Australia will investigate building a nuclear submarine fleet in partnership with the UK and US.
"We intend to build these submarines in Adelaide in close cooperation with the United Kingdom and the United States," Mr Morrison said.
"But let me be clear. Australia is not seeking to establish nuclear weapons or establish a civil nuclear capability.
"We will continue to meet all of our nuclear non-proliferation obligations."
Mr Morrison joined US President Joe Biden and UK Prime Minister Boris Johnson in making a joint statement confirming the pact.
"Today, we join our nations in the next generation partnership, built on a strong foundation of proven trust," Mr Morrison said.
"We have always seen the world through a similar lens.
"We have always believed in a world that favours freedom, that respects human dignity, the rule of law, the independence of sovereign states and the peaceful fellowship of nations."
In 2016, the federal government enlisted the French shipbuilder Naval Group to build a new submarine fleet to replace Australia's ageing Collins Class submarines.
The deal involved building 12 new submarines in Adelaide, with the first of the new vessels to enter service around 2035.
But the project has been hit by heavy delays and massive cost blowouts.
Federal cabinet ministers were summoned to a secret meeting in Canberra on Wednesday ahead of the announcement after being granted border exemptions to enter the ACT.
Defence Minister Peter Dutton and Foreign Affairs Minister Marise Payne are already in Washington for the 31st annual Australia-US Ministerial Consultations, or AUSMIN.
Opposition Leader Anthony Albanese and three other members of his frontbench were also briefed on the sensitive matter.
Mr Morrison is due to travel to Washington next week for a meeting of the Quad alliance of the US, India, Japan and Australia.
with Reuters
© AAP 2021