Australia will spend up to $368 billion acquiring eight nuclear-powered submarines over the next three decades through the AUKUS pact, which includes the United States and UK.

Former US navy secretary Richard Spencer says western nations need a presence in the area to deter a possible attack.

"If China wants to make a play for power dominance - look at what they're doing already with cutting of the cables in Taiwan - you have to be able to show that you're in the area," he told the National Press Club on Monday.

"There's a great phrase, 'peace through presence'. I call it 'power through deterrence'. You have to be on the beat, you have to be on the patrol."

Defence Minister Richard Marles said it was crucial Australia protected supply lines given the increased reliance on trade.

"We have long trading routes which connect us to the world and that trade has grown," he said.

"We import most of our petrol from overseas and indeed import most of it from just one country and so Australia has always needed a long-range submarine capability."

Mr Spencer said governments needed to work with the private sector to ensure the success of the AUKUS pact, which includes technology collaboration in areas such as artificial intelligence and quantum.

He spoke of the build-up US industry experienced during World War II as a precedent, with Henry Ford scaling up investment in his manufacturing line to produce a B-24 aircraft every hour at its height.

"I use it as an example of how to focus government and private practice together to get the outcomes we need," he said.

"It's time we get back in shape and back to the weight room."

Prime Minister Anthony Albanese said making and using nuclear-powered submarines would be a whole of nation effort over the next three decades.

"The scale and complexity and economic significance of this investment is akin to what happened when Curtin and Chifley created the Australian automotive industry post-war," he told parliament.

"This will have a massive spin-off for Australian manufacturing and for the Australian economy."

Mr Spencer said the US needed to consider buying submarine components from Australia, given strains on the American production line.

"We do have a nationalistic wrap on the Department of Defence which has to be released," he said.

"If the Virginia class submarine has 4800 ball valves and we can only produce 2000 and you have another 2000, why wouldn't I buy them from Australia?"

Australian Associated Press