Australia confirmed the contribution for construction of AUKUS submarines which will run for 10 years.
Australia set to provide $3 billion to British Industry to help support the construction of nuclear-powered submarines.
Australia is with United Kingdom and United States in the AUKUS deal.
The announcement came a day after Australia and the UK signed a defence pact to better meet security challenges such as China’s increased activity in the South China Sea and the Pacific.
AUKUS trilateral security alliance was first announced in 2021.
Australia hopes to have eight nuclear-powered vessels in the water by the 2050s.
On Friday, senior officials from the UK and Australia as well as the US ambassador in Australia, visited the shipyard where the submarines will be built in the South Australia city of Adelaide.