In a major development that marks a shift in international defense partnerships, Japan has secured a landmark A$10 billion (US$6.5 billion) agreement with Australia. Under this deal, Japan will supply next-generation warships to the Royal Australian Navy.
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This is Japan’s most significant defense export since lifting its military equipment export ban in 2014.
The deal highlights Japan’s growing role in the global defense sector. It also shows a deepening military relationship between Japan and Australia. Mitsubishi Heavy Industries, which will begin delivering improved Mogami-class frigates in 2029, signed the agreement.
These warships are built to perform multiple roles at sea. They can track and destroy submarines, strike enemy ships, and defend against aerial threats. The Mogami-class frigates are also highly automated, meaning they need only 90 crew members—less than half the number needed for older ships.
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This contract covers an initial three frigates. These will be built in Japan and form part of Australia’s largest naval purchase since joining the AUKUS pact for nuclear submarines in 2023. An additional eight ships are planned to be constructed in Western Australia by local shipbuilder Austal.
Features of the New Mogami-Class Warships
The modernized Mogami-class frigates are equipped with cutting-edge machinery. They are designed to travel long distances—up to 10,000 nautical miles—without refueling. This makes them ideal for patrolling Australia’s vast maritime regions in the Indian and Pacific Oceans. By contrast, the range of Australia’s present Anzac-class ships is a mere 6,000 nautical miles.
These new warships can launch long-range missiles and are built for maximum efficiency. Their design allows for advanced radar systems and weapons while using fewer crew members. This reduces operational costs and increases mission readiness.
Australia aims to use these warships to secure its sea trade routes and its northern waters. The Indian and Pacific Oceans have seen increased activity and presence by China in recent years. These ships will help Australia patrol and protect important waterways more effectively.
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Germany’s ThyssenKrupp Marine Systems, which had offered the MEKO A-200 frigate, lost out to Japan’s Mitsubishi Heavy Industries. The decision was made by Australia’s national security committee after comparing all available options.
Shares of both companies involved in the deal showed a strong rise after the announcement. Mitsubishi Heavy Industries saw a gain of over 3%, while Austal’s shares climbed more than 5%. This boost reflects investor confidence in the long-term benefits of the project for both countries.
Strategic Benefits for Both Nations
It’s not only about building battleships in this deal. It signals a new level of defense cooperation between Japan and Australia. Until now, Japan’s security ties have mainly focused on its alliance with the United States. This agreement opens a new chapter where Japan partners directly with other countries.
Officials from both countries have said that the contract will also support local industries and create new job opportunities. The project is expected to help develop skills in shipbuilding, science, and defense technology in both Japan and Australia.
Production transfer, long-term maintenance, and pricing terms are still being discussed. The goal is to finalize all remaining details of the contract early next year. Both sides are working to make sure the construction and operations are smooth and beneficial to all involved industries.
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Mitsubishi Heavy Industries, which also designed the submarine that was rejected by Australia in 2016, issued a statement expressing its commitment to this new project. The company believes the collaboration will strengthen the defense industries in both countries and enhance their technological capabilities.
The involvement of Japanese and Australian industries will help train engineers, scientists, and skilled workers. It will also build a solid base for future defense manufacturing and innovation in both nations.
This deal reflects a shared interest between Japan and Australia in maintaining safety and stability in the region. It is also a significant moment for Japan’s postwar defense policy, showing its willingness to play a larger role on the global stage.