Prime Minister Tony Abbott has reassured coalition MPs the submarine project will create jobs in South Australia.
The government is weighing up the best option for replacing the Collins Class subs.
The main contract appears likely to go to Japan.
Mr Abbott was asked by an SA Liberal MP in the coalition party room meeting on Tuesday whether the government could provide any guarantee that about 250 downstream suppliers could secure work from the multi-billion-dollar project.
The MP said the suppliers were able to deal with very high-end contracts.
The prime minister said there was some way to go before a final decision on the submarines.
But the Australian industry contribution to the project would be "centred on South Australian shipyards".
He said SA was also likely to benefit from a future expansion of the Olympic Dam mine.
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