Australia Finalises Landmark Defence Deal
The Australian Government has awarded a $10 billion contract to Mitsubishi Heavy Industries of Japan. The deal marks Australia’s largest surface fleet acquisition since the submarine pact with the United States and Britain. Officials made the decision months ahead of schedule. The new warships will help to replace the ageing Anzac-class vessels in the Royal Australian Navy, strengthening national maritime security and capability.
Australia selects Japan for $10 billion Frigate fleet upgrade
Selection of the Mogami-Class Frigate
The rigorous contest saw Japan’s upgraded Mogami-class frigate outscore the German MEKO A-200 from ThyssenKrupp Marine Systems. Defence Minister Richard Marles said, “The Mogami-class frigate is the best frigate for Australia.” The selection process focused on capability, costs, schedule, and future needs. The government acknowledged the competitive proposal from Germany, praising their commitment and professionalism throughout the process.
Building and Delivery Timeline
Mitsubishi Heavy Industries will deliver the first three frigates, which will be built in Japan. The remainder of the 11 new ships will be constructed in Western Australia by Austal Defence Shipbuilding Australia. Officials expect the first warship to arrive in 2029, with the last delivered before 2040. This arrangement accelerates delivery, with Australia receiving three production slots at the Japanese shipyard. Canberra has entered a Strategic Shipbuilding Agreement to ensure smooth technology transfer and local involvement.
Frigate Capabilities and Specifications
The upgraded Mogami-class features a 32-cell vertical launch system, surface-to-air and anti-ship missile capability, and a range of up to 10,000 nautical miles. The ships will require about half the crew of the current Anzac-class vessels. The advanced design aims to support undersea warfare, air defence, and secure Australia’s maritime approaches. The vessels will accommodate Tomahawk cruise missiles in future integrations. Australian regulatory requirements shape minor changes to the warship, such as signage in English.
Strategic and Economic Impact
Defence Minister Richard Marles described the deal as “a very significant moment in the bilateral relationship between Australia and Japan.” The agreement represents Japan’s biggest-ever defence contract, coming less than a decade after the country lifted its military export ban. Japanese Defence Minister Gen Nakatani said, “This collaboration is of significant security importance to Japan.” The decision aligns Australia closely with Japan and the US, increasing alliance interoperability for Indo-Pacific security challenges. Canberra will receive full intellectual property rights and a 40-year support arrangement for the Australian variant.
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Industry and Workforce Benefits
Australian Defence Industry Minister Pat Conroy emphasised local employment benefits. The project will create jobs in shipbuilding, technology, and engineering, with eight of the frigates built in Western Australia. The arrangement ensures Australian workers and suppliers get vital roles in a globally significant naval program. This initiative is expected to strengthen the Australian defence industrial base and support innovation across the maritime sector.
Geopolitical Context
Analysts see the acquisition as reinforcing deterrence, showing two key US allies boosting naval strength and cooperation. The decision follows recommendations from the 2024 Surface Combatant Fleet Review, which urged rapid renewal to meet emerging regional threats. The Albanese Government signalled intent to transform the Royal Australian Navy into a more capable, integrated force.
Procurement Steps to Continue
Officials will now finalise legal, financial, and technology transfer arrangements with Mitsubishi Heavy Industries and the Japanese government by the end of 2026. The Minister for Defence thanked all participants, underlining Australia’s “commitment to getting the best platform, the best capability for the Royal Australian Navy.”
Australia’s landmark agreement secures vital maritime security, tightens links to Japan, and bolsters strategic capability for decades to come. It also sets a precedent for future defence collaborations, highlighting the importance of regional partnerships in an evolving security landscape.
