Japan finalized a groundbreaking A$10 billion ($6.5 billion) contract to build warships for Australia on Tuesday, representing its largest defense export since ending its military export restrictions in 2014. The agreement highlights Tokyo’s move away from postwar pacifism toward countering China’s expanding influence.
As part of the agreement, Mitsubishi Heavy Industries will provide three enhanced Mogami-class frigates to the Royal Australian Navy starting in 2029, while eight more vessels will be constructed domestically in Australia.
Built for submarine hunting, surface combat, and air protection, these cutting-edge warships need only 90 crew members, half the personnel of Australia’s older Anzac-class frigates.
Australia intends to use the vessels to protect key maritime trade corridors and northern access points in the Indian and Pacific Oceans as China expands its military reach.
Australian Deputy PM Richard Marles highlighted the deal’s importance in boosting the navy’s power projection amid key strategic challenges.
The Mogami, representing the move to modular warships, provides increased firepower and 4,000 nautical miles more range than current vessels.
Defence Minister Pat Conroy highlighted the upgrade, increasing frigates’ air defense missile capacity from 32 to 128 with cutting-edge technology.
The agreement advances Japan’s strategy to expand security partnerships beyond its U.S. alliance in response to China.
Euan Graham from the Australian Strategic Policy Institute said the partnership solidifies Japan and Australia’s cooperation, sending a clear message to Beijing of their united stance.
The frigate contract helps offset Australia’s 2016 rejection of MHI’s submarine bid, which was abandoned in 2023 for nuclear subs developed with the US and UK through AUKUS.
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Japan’s Defence Minister Gen Nakatani noted Australia appreciated the ships’ technical excellence and the strong collaboration between government and industry.
