In a landmark defence agreement, Australia and Japan have signed the largest defence-industrial contract in the history of their bilateral ties. The deal will see 11 state-of-the-art Mogami-class frigates built for the Royal Australian Navy in collaboration with Japan’s Mitsubishi Heavy Industries (MHI).

“This is the most significant defence industry partnership between Australia and Japan ever,” said Australia’s Defence Minister Richard Marles on Tuesday, confirming the strategic milestone.

The $10 billion AUD deal (approximately US $6.5 billion) was first reported by the Australian Broadcasting Corporation (ABC). The agreement will bolster Australia’s naval strength and enhance Indo-Pacific security cooperation.

🔹 What’s in the Deal?

• Three frigates will be built in Japan by MHI starting 2029.

• The remaining eight will be constructed in Western Australia, supporting domestic shipbuilding and defence jobs.

• The Mogami-class ships offer advanced stealth capabilities, long-range strike options, and cutting-edge sensors.

Marles emphasized the frigates will significantly enhance the navy’s lethality and maritime reach, replacing the aging ANZAC-class vessels.

This is also Japan’s largest-ever arms export since it lifted its post-WWII arms export ban in 2014, reflecting growing defence ties in response to rising regional tensions.

Key capabilities

• Range: Up to 10,000 nautical miles, compared to the Anzac-class ~6,000 nm.

• Weapons: 32 Mk.41 vertical launch cells supporting long-range missiles like SM‑2, SM‑6, and Tomahawk, boosting air defense capacity up to 128 missiles.

• Crew: Operate with just ~90 sailors roughly half the manpower needed onboard Anzac-class ships.

🔹 Strategic and industrial impact

• Defense cooperation: Australian officials see the deal as deepening ties with a strategic partner, and enhancing interoperability with the US and Japan across future Indo-Pacific operations.

• Industrial boost: The contract is expected to create up to 10,000 jobs in Henderson, while supporting technological upgrades and defence-industry capacity in both countries.

• Negotiations ongoing: While the framework is set, final contracts on pricing, sustainment, and intellectual property/production transfer are expected to conclude in 2026.