Australia has named Mitsubishi Heavy Industries (MHI) as its preferred supplier for a new fleet of advanced frigates — a move that marks a significant milestone in Japan’s ambitions to become a leading arms exporter. The decision, announced jointly by Tokyo and Canberra this week, comes amid rising security tensions in the Indo-Pacific and mounting pressure on global defence supply chains.
The deal, valued at approximately $6.5 billion, is expected to be finalised early next year. If completed, it will represent Japan’s first overseas sale of a complete defence platform with full combat capabilities since the end of the Second World War. Analysts view the agreement as a potential model for future Japanese exports of warships, missile systems, and radar technology.
Industry experts note that this breakthrough reflects a changing defence market. With conflicts in Ukraine and the Middle East driving global military spending higher, and with the United States unable to fully meet the demand for advanced weapons among its allies, nations are seeking new suppliers with reliable production and delivery capabilities.
For Japan, the deal follows years of cautious re-entry into the global arms market. In 2014, Tokyo lifted a decades-long ban on most weapons exports, but significant wins had been elusive — most notably when Japan lost out to France in 2016 for a $35 billion Australian submarine contract. This time, observers say, Japanese industry and government officials tailored their offer more effectively to Australia’s operational needs.
The proposed vessel — an upgraded Mogami-class frigate — requires a crew of only 90 compared to the 120 needed for a competing German design. Despite the smaller crew requirement, the ship offers greater range and expanded weapons capacity, aligning with Canberra’s requirements. MHI has also committed to delivering the first ship by 2029, ensuring there is no capability gap when Australia’s current Anzac-class frigates retire. The design also promises full interoperability with the US Navy, an important factor for Australia’s defence planning.
If successful, the agreement could accelerate Japan’s transition from a largely domestic defence producer to a credible international supplier, strengthening strategic partnerships in the Indo-Pacific and beyond.
Partner With Us
Want to feature your brand, business, or service on 365247 — Whether you’re looking to sponsor, collaborate, or build presence within our ecosystem, we’d love to explore it with you.
Submit your Interest Here
IMAGE: Reuters
