Japanese corporation Mitsubishi Heavy Industries (MHI) has been selected as the preferred contractor to build a new fleet of frigates for Australia, the country’s government officially announced on Tuesday.
The first phase of the agreement involves up to 11 ships worth up to A$10 billion (≈$6.5 billion). The final contract will be signed in 2026. This is Japan’s first ever deal to export military ships.
MHI has previously sold radar equipment to the Philippines, but a full-scale contract for the delivery of frigates is the largest defence equipment export deal ever signed by a Japanese company. MHI’s victory over its German competitor Thyssenkrupp is considered strategic: Japan and Australia are actively moving closer together amid growing tensions in the Indo-Pacific region.
Australian Deputy Prime Minister and Defence Minister Richard Marles said that the choice of MHI reflects the “deep strategic agreement” between the countries. Australia will receive an upgraded version of the Mogami frigate. The first three ships will be built in Japan, and the remaining eight at the Austal shipyard in Western Australia.
The Australian government will retain control through a “sovereign share” mechanism. According to Defence Procurement Minister Pat Conroy, MHI’s bid was the “clear winner” in terms of overall cost, delivery schedule and combat capabilities. The Japanese frigate requires a smaller crew, is easier to arm and is more durable.
The frigate contract is part of Australia’s large-scale defence modernisation programme: the country is also building nuclear submarines under the AUKUS agreement with the US and the UK, as well as Hunter-class frigates at shipyards in Adelaide.
Japan’s victory in the Australian tender is a historic turning point: Tokyo is consolidating its role as an exporter of sophisticated weapons, while Canberra is betting on an alliance with Japan as a counterweight to China. The Mogami contract is more than just a supply deal: it is the foundation for a new defence architecture in the Indo-Pacific region.
