Henderson is set to become the largest naval maintenance hub in the Southern Hemisphere after the state and federal governments inked a deal tipped to be worth up to $20 billion to expand the shipyard and maintain future nuclear-powered submarines.

On Wednesday, Defence Minister Richard Marles revealed Henderson would become a fully fledged defence precinct, with infrastructure to facilitate the maintenance of nuclear-powered submarines and the surface fleet, including multiple dry docks.

The hub is expected to create as many as 10,000 ongoing jobs, with WA Premier Roger Cook claiming the industry would rival the resources sector as a key area for economic activity.

That figure includes up to 3500 roles at HMAS Stirling naval base, which will receive $8 billion in new infrastructure over the next decade.

It also includes 3000 roles at depot-level maintenance in Henderson, 1000 in construction and 2300 across surface fleet and landing craft.

Marles said the plan represented the most significant defence industry offering to WA since federation and underscored the state’s role in the AUKUS partnership.

The federal government has pledged $127 million over the next three years to do the initial works, including a detailed design that is expected to help finalise the total cost of the project which is tipped to be anywhere between $12 billion to $20 billion.

But the state and federal government acknowledged acquiring the workforce necessary to staff the precinct would be difficult given its record low unemployment rate.