Japan, in its biggest arms deal since World War II, sells stealth frigates worth $6 billion to Australia
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Japan, in its biggest arms deal since World War II, sells stealth frigates worth $6 billion to Australia

August 5, 2025
07:22 AM
4 min read
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defenseaerospacemarket cyclesseasonal analysisgeopolitical

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Japan's Mitsubishi Heavy Industries beat Germany's ThyssenKrupp Marine Systems for the tender.

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4 min read

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business news

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August 5, 2025

07:22 AM

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Fortune

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defenseaerospacemarket cyclesseasonal analysisgeopolitical

·AustraliaJapan, in its biggest arms deal since World War II, sells stealth frigates worth $6 billion to AustraliaBy AFPBy AFP The Japan Maritime Self-Defence Force stealth frigate JS Mogami (FFM-1) participates in an International Fleet Review commemorating the 70th anniversary of the founding of the Japan Maritime Self-Defence Force at Sagami Bay on November 6, 2022 off Yokosuka, Japan.Issei Kato—Pool/Getty ImagesAustralia will upgrade its navy with 11 Mogami-class frigates built by Japan’s Mitsubishi Heavy Industries, Defense Minister Richard Marles said on Tuesday

Billed as Japan’s biggest defense export deal since World War II, Australia will pay $6 billion (10 billion Australian dollars) over the next 10 years to acquire the fleet of stealth frigates

Australia is in the midst of a major military restructure, bolstering its navy with long-range firepower in an effort to deter China

It is striving to expand its fleet of major warships from 11 to 26 over the next decade. “This is ly the biggest defense-industry agreement that has ever been struck between Japan and Australia,” Marles said, touting the deal. “This decision was made based on what was the best capability for Australia,” he added. “We do have a very close strategic alignment with Japan.” Mitsubishi Heavy Industries was awarded the tender over Germany’s ThyssenKrupp Marine Systems

Mogami-class warships are advanced stealth frigates equipped with a potent array of weapons

Marles said they would replace Australia’s ageing fleet of Anzac-class vessels, with the first Mogami-class ship to be on the water by 2030. “The Mogami-class frigate is the best frigate for Australia,” said Marles. “It is a next-generation vessel

It has 32 vertical launch cells capable of launching long-range missiles.” The deal further cements a burgeoning security partnership between Australia and Japan

Japan is deepening cooperation with U.S. allies in the Asia-Pacific region that, Tokyo, are involved in territorial disputes with China

Both Japan and Australia are members of the “Quad” group alongside India and the United States

Japanese government spokesman Yoshimasa Hayashi said Tuesday the deal was “of of trust in our nation’s high-level nology and the importance of interoperability between Japan’s self defense forces and the Australian military.” It was also a “big step toward elevating the national security cooperation with Australia, which is our special strategic partner”, Hayashi told reporters in Tokyo. ‘More lethal’ Japan’s pacifist constitution restricts it from exporting weapons—but in 2024 Tokyo loosened arms export controls to enable it to boost sales abroad

The order is Japan’s biggest defense export deal since World War II, according to local media

Defense industry minister Pat Conroy said the Mogami-class frigates were capable of launching long-range Tomahawk cruise missiles. “The acquisition of these stealth frigates will make our navy a bigger navy, and a more lethal navy,” he said

The first three Mogami-class frigates will be built overseas, Conroy said, with shipbuilding yards in Western Australia expected to duce the rest

Australia announced a deal to acquire U.S.-designed nu-powered submarines in 2021, scrapping a years-long plan to develop non-nu subs from France

Under the tripartite AUKUS pact with the United States and the United Kingdom, the Australian navy plans to acquire at least three Virginia-class submarines within 15 years

The AUKUS submarine gram alone could cost the country up to $235 billion over the next 30 years, according to Australian government forecasts, a price tag that has stoked criticism

Major defense jects in Australia have long suffered from cost overruns, government U-turns, policy changes and ject plans that make more sense for local job creation than defense

Australia plans to gradually increase its defense spending to 2.4% of gross domestic duct—above the 2% target set by its NATO allies, but well short of U.S. demands for 3.5%.