Local News
Japan Secures Landmark $6.5 Billion Deal To Build Australia’s Next-Gen Warships
Japan has clinched its most significant international defence deal in decades, signing a landmark A$10 billion ($6.5 billion) agreement on Tuesday to supply Australia with next-generation warships. The contract marks Tokyo’s most consequential military export since lifting its postwar weapons export ban in 2014, signalling a growing shift from pacifism to proactive regional defence collaboration.
Under the agreement, Japanese defence giant Mitsubishi Heavy Industries (MHI) will deliver the first three upgraded Mogami-class multi-role frigates to the Royal Australian Navy beginning in 2029. These advanced warships, designed for submarine hunting, surface strikes, and air defence, are highly automated and require just 90 personnel—less than half the crew needed for current vessels.
Australian Deputy Prime Minister Richard Marles hailed the deal as a critical investment in national security: “It’s going to be really important in terms of giving our navy the capability to project, and impactful projection is at the heart of the strategic challenge.”
The new frigates will bolster Australia’s ability to secure vital maritime trade routes and defend its northern approaches in the increasingly contested Indo-Pacific, where China’s naval activity has intensified in recent years.
For Japan, the deal signifies a leap forward in its ambitions to deepen defence ties beyond its traditional alliance with the United States. Japanese Defence Minister Gen Nakatani described the agreement as “a major step forward” in strengthening trilateral interoperability with both Australia and the US.
The successful frigate bid also helps Japan recover from a blow in 2016, when its submarine proposal was passed over by Australia in favour of a French design. That French project was later scrapped in 2023 in favour of a nuclear-powered submarine programme under the AUKUS security pact involving Australia, the United States, and the United Kingdom.
The full plan involves eleven ships, with MHI constructing the initial three in Japan. The remaining eight are expected to be built domestically by Austal in Western Australia, further integrating both nations’ defence industries.
“The broad-based participation of industries from both Japan and Australia in general-purpose frigates is expected to strengthen human resource development in science and technology, as well as the foundations of the defence industry, in both countries,” MHI, which also designed the submarine rejected by Australia in 2016, said in a press release.
Shares in MHI jumped more than 3% following the announcement, while Austal shares surged over 5%.
Despite the milestone, several key elements—including production transfer timelines, sustainment logistics, and final pricing—remain subject to ongoing negotiations. Officials from both countries aim to finalise a detailed contract by early next year.
Australia’s decision to go with the upgraded Mogami-class design came after a competitive evaluation process, where it was ultimately selected over the MEKO A-200 frigate proposed by Germany’s ThyssenKrupp Marine Systems.
The Mogami-class boasts a range of up to 10,000 nautical miles—significantly outpacing Australia’s existing Anzac-class frigates, which max out at 6,000 nautical miles. The vessels will also be equipped with long-range missile launch capabilities, giving the Royal Australian Navy enhanced reach and firepower.
As the Indo-Pacific faces evolving strategic threats, the deal underscores both countries’ growing resolve to jointly enhance maritime security and deter regional aggression.
