Prime Minister Malcolm Turnbull has defended the extra cost of building Australia's next fleet of submarines in partnership with the French, saying it isn't like ordering an iPhone from overseas.
DCNS will build 12 Shortfin Barracudas designed especially for the Australian navy to replace the Collins Class fleet after winning the $50 billion contract ahead of Japan and Germany.
"A submarine is not like an iPhone that you can just buy from overseas and, if it doesn't work, you can buy a new one," Mr Turnbull told ABC radio on Wednesday.
"This is the most complex, sophisticated, technologically-advanced piece of machinery or vessel that will be built."
Mr Turnbull said while it was slightly more expensive to build submarines locally, it wasn't "the huge figure that people have speculated about".
He expects to sign an agreement with DCNS before the end of the year, which will ensure generations of jobs and secure Adelaide's place as a "centre of naval architecture".
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