Australia, Japan Strike Landmark $10 Billion Warship Deal

Australia has announced its largest-ever defence industry agreement with Japan — a multibillion-dollar plan to upgrade its naval fleet with next-generation warships built by Japanese defence giant Mitsubishi Heavy Industries.

Speaking on Tuesday, Defence Minister Richard Marles confirmed that Australia will acquire 11 Mogami-class frigates — stealth warships capable of long-range operations and advanced missile systems — in a deal valued at 10 billion Australian dollars (around $6.5 billion USD), according to the Australian Broadcasting Corporation.

“This is clearly the biggest defence-industry agreement that has ever been struck between Japan and Australia,” Marles said.

The new frigates will significantly boost Australia’s naval capabilities, with an operational range of 10,000 nautical miles — far beyond the current Anzac-class fleet, which maxes out at 6,000. The Mogami-class vessels are also equipped to fire up to 128 air defence missiles, four times more than the current standard.

“It’s a next-generation vessel. It is stealthy,” Marles said. “It’s going to be really important in terms of giving our navy the capability to project, and impactful projection is at the heart of the strategic challenge.”

Under the agreement, three of the ships will be constructed in Japan, while the remaining eight are expected to be built in Australia. The full project forms part of Canberra’s broader 55 billion AUD ($35.5 billion USD) investment into its surface combatant fleet over the next decade.

Defence Industry Minister Pat Conroy praised the deal as a game-changer for Australia’s naval defences:

“It will take our general purpose frigates from being able to fire 32 air defence missiles to 128 missiles, giving our sailors the cutting‑edge weapons and combat systems they need.”

The ships are expected to enter service by 2030.

Beyond defence, the deal marks a new chapter in Australia-Japan relations, as the two nations continue to strengthen military and strategic cooperation amid growing tensions in the Indo-Pacific.