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Australia Navy · Japan Defense Exports · Mitsubishi Heavy Industries · Regional Security
Japan's Mitsubishi Heavy Industries (MHI) secured a multi-billion dollar deal, valued between A$7 billion and A$11 billion ($4.3 billion to $6.8 billion), to build eleven advanced naval frigates for Australia, significantly boosting Tokyo's ambitions to become a major military equipment exporter.
MHI was chosen over Germany’s Thyssenkrupp Marine Systems, marking a landmark for Japan's defense export market, following a 2020 radar system deal with the Philippines. Japan is gradually loosening post-WWII defense export restrictions to accelerate industry growth and shore up its defense industrial base.
The Mogami-class frigates offer "stealthy" protection and 32 vertical launch cells, surpassing the German rival, despite being more expensive. Australia's Defence Minister Richard Marles noted the larger ship can operate with a smaller crew.
The deal deepens defense ties between Tokyo and Canberra, both seeking regional security partnerships amid concerns about China's military expansion and doubts over US alliances. The first three frigates will be built in Japan, with the remainder in Western Australia, with delivery starting in 2029 and service in 2030.
This procurement is part of Australia's plan to expand its naval fleet to 26 warships by the mid-to-late 2040s, its largest since WWII, addressing a "not fit for purpose" defense force. MHI shares gained up to 4.5% on the news.
