Australia to Acquire 11 Advanced Warships from Japan in $6.5 Billion Deal

Australia has signed a $6.5 billion deal with Japan to acquire 11 advanced Mogami-class frigates, marking Japan's first warship export since World War II. The agreement strengthens strategic ties between the two countries and is part of Australia's plan to expand its naval fleet amid growing concerns over China’s military presence. The first three ships will be built overseas, with the rest constructed in Western Australia.

Australia has announced a significant upgrade to its naval capabilities with the acquisition of 11 new frigates from Japan. This major defense deal was revealed on Tuesday by Australian Defense Minister Richard Marles, who described it as the most substantial defense-industrial agreement ever made between the two countries. Valued at 10 billion Australian dollars (equivalent to $6.5 billion or €5.6 billion), the contract was awarded to Mitsubishi Heavy Industries, which will supply advanced Mogami-class warships. The Japanese company secured the contract over Germany’s ThyssenKrupp Marine Systems, reflecting Australia’s growing strategic alignment with Japan.

Richard Marles emphasized that the decision to partner with Japan was driven by capability and strategic interests, noting the close defense cooperation between the two Indo-Pacific allies. The Mogami-class frigates are state-of-the-art warships known for their stealth capabilities and powerful weapon systems. Each vessel is equipped with 32 vertical launch cells capable of deploying long-range missiles, making them a formidable addition to Australia's naval fleet. Marles stated unequivocally that the Mogami-class is the best frigate for Australia, describing it as a next-generation, stealthy, and highly capable vessel.

Despite its strengths, the Japanese bid was initially seen as more expensive and riskier compared to other options. According to The Australian newspaper, concerns arose partly because Japan has little history of exporting defense equipment. This hesitancy is rooted in Japan’s pacifist constitution, which was implemented after World War II and has historically limited the country’s arms exports. As a result, the agreement with Australia marks a historic moment for Japan, representing its first export of warships since before World War II and only the second time it has finalized a major overseas defense package.

Australia plans to have the first three frigates built offshore, while the remaining eight will be constructed domestically in Western Australia. This approach combines international expertise with local industry development. However, it is noteworthy that Mitsubishi Heavy Industries has never previously built warships in a foreign country, which introduces a new level of complexity to the project.

The frigate acquisition is part of a broader military restructuring effort by Australia, which began in 2023 in response to China's growing military presence and assertiveness in the Indo-Pacific. As part of this strategy, Australia is aiming to expand its fleet of major warships from 11 to 26 within the next decade. The government is focused on enhancing its long-range strike capabilities and strengthening its defense posture across the region.

This procurement represents the largest defense investment by Australia since 2021, when the country entered into the AUKUS security pact with the United States and the United Kingdom. Under that agreement, Australia committed to purchasing and building a fleet of nuclear-powered submarines, replacing an earlier deal with France for non-nuclear submarines. That French contract was scrapped in favor of the more advanced U.S.-designed submarines, signaling a deeper shift in Australia’s defense strategy and its preference for closer ties with allies capable of delivering cutting-edge military technology.

The latest deal with Japan further underscores Australia’s commitment to regional security cooperation and its intent to modernize its defense forces in line with emerging threats and strategic challenges.