Australia Secures $6.5 Billion Deal for 11 Japanese Warships

Australia will bolster its naval fleet by acquiring 11 state-of-the-art Mogami-class frigates from Japan in a $6.5 billion defence deal, its largest ever with the country.

Defence Minister Richard Marles confirmed the agreement on Tuesday, awarding the contract to Mitsubishi Heavy Industries over Germany’s ThyssenKrupp Marine Systems.

The agreement deepens strategic ties between Australia and Japan, two key partners in the Indo-Pacific region. Marles said the decision was based on capability, describing the Mogami-class frigate as stealthy and next-generation, with 32 vertical launch cells for long-range missiles.

Despite concerns over cost and risk, Japan’s bid won out. The country has limited experience exporting defence equipment due to post-World War II restrictions. This marks Japan’s first warship export since before the war and only its second major defence deal overseas.

The first three frigates will be built abroad, while the remaining eight will be constructed in Western Australia. It will be Mitsubishi’s first time building warships outside Japan.

The move is part of a broader shift in Australia’s military strategy, announced in 2023, which focuses on long-range capabilities in response to China’s regional military build-up. Australia aims to increase its major warship fleet from 11 to 26 within the next decade.