Australia Secures Major Defense Agreement with Japan for Frigates

Australia has finalized a significant defense procurement deal with Japan, involving the acquisition of 11 advanced Mogami-class frigates. This transaction marks Japan's largest post-war defense export contract, valued at approximately 10 billion Australian dollars (about 6.5 billion USD or 5.6 billion EUR). The Japanese conglomerate Mitsubishi Heavy Industries has been awarded the contract, surpassing Germany's ThyssenKrupp Marine Systems in the bidding process.

Australian Defense Minister Richard Marles highlighted the importance of this agreement, stating it strengthens the strategic partnership between Australia and Japan. He emphasized that the decision was based on selecting the best capabilities to enhance Australia's naval defense. The Mogami-class frigates are recognized for their advanced technology, including their stealth features and 32 vertical launch cells designed for long-range missile capabilities.

This deal signifies a pivotal shift for Japan, which has historically had restrictions on military exports due to its pacifist constitution enacted after World War II. The agreement represents Japan's first export of warships since before the war and only its second major defense package sold internationally. As part of the contract, the initial three frigates will be constructed overseas, with the remaining vessels manufactured in Western Australia, marking a first for Mitsubishi Heavy Industries in building warships outside of Japan.

Australia's decision to enhance its naval capabilities comes amid rising tensions in the Indo-Pacific region, particularly due to China's military expansion. In response, Australia is undergoing a significant military restructuring, focusing on developing long-range strike capabilities. The country aims to increase its fleet of major warships from 11 to 26 over the next decade.

The frigate purchase is Australia's most substantial defense acquisition since 2021, when the nation announced plans to procure and construct a fleet of nuclear-powered submarines as part of the AUKUS pact, which includes collaboration with the United States and the United Kingdom.

Japan's competitive bid for this contract was notably considered higher in cost and risk, given its limited history in defense exports. However, the advanced capabilities of the Mogami-class vessels are seen as a critical asset for Australia's defense strategy.