Leaders from Australia, the United Kingdom, and the United States gathered in San Diego this week to unveil their highly anticipated plan for equipping Australia with nuclear-powered submarines under the AUKUS framework. This centerpiece of the Biden administration’s Indo-Pacific strategy is part of a new suite of defense industrial, force posture, and strategic policy initiatives designed to strengthen the U.S.-Australia alliance and deter potential Chinese adventurism in the region.

But AUKUS faces serious hurdles, from barriers to information sharing and technology transfers to uncertainties about combined military operations, which could jeopardize the alliance’s strategic value. How can Washington ensure the deal’s success and capitalize on AUKUS’—and Australia’s—full potential?