Australia is getting closer to establishing a fleet of nuclear submarines with a $3 billion contract with the United Kingdom

The two nations announced on Friday that Australia would provide British industry with $3 billion (or 4.6 billion Australian dollars) to help build nuclear-powered submarines and guarantee the timely arrival of its new fleet.

The declaration was made the day after the two nations agreed to strengthen their defense and security cooperation in response to issues including China’s heightened involvement in the South China Sea and South Pacific. According to UK Defence Minister Grant Shapps, submarine development is both costly and essential.

America will equip its Virginia-class submarines with weaponry.