Australian Deputy Prime Minister and Minister for Defence Richard Marles.

The agreement binds the three countries to security arrangements regarding the transfer of sensitive US and UK nuclear material and know-how as part of the 2021 AUKUS trilateral security agreement.

AFP news agency quoted Australian Deputy Prime Minister and Defense Minister Richard Marles as emphasizing: "This agreement is an important step towards Australia's acquisition of conventionally armed nuclear-powered submarines for the Royal Navy."

Australia's acquisition of a fleet of nuclear-powered submarines would set "the highest non-proliferation standards," he said, stressing that the country was not seeking nuclear weapons.

The latest agreement, signed in Washington last week and tabled in parliament by Australia today (August 12), includes a provision allowing Canberra to indemnify its partners against any liability for nuclear risks from materials sent to the Oceanian nation.

Nuclear materials for future submarine propulsion systems will be shipped from the US or UK in the form of “complete welded power units,” the report said.

However, Australia will be responsible for storing and disposing of spent nuclear fuel and radioactive waste from nuclear power units transferred under the agreement.

The transfer agreement states: “Submarines are an essential part of Australia’s naval capability, providing a strategic advantage in terms of monitoring and protecting our sea lanes.”

In April, during a visit to Australia, Chinese Foreign Minister Wang Yi warned that AUKUS posed "serious nuclear proliferation risks", saying it went against the South Pacific treaty banning nuclear weapons in the region.