In a historic move that marks the most significant naval acquisition in Australian history—and the largest Japanese defense export deal since World War II—Australia has announced the procurement of 11 Mogami-class stealth frigates from Japan’s Mitsubishi Heavy Industries (MHI). The deal, valued at $6.5 billion (A$10 billion), is not merely a contract for ships, but a strategic signal: Australia is serious about transforming its maritime posture to counter the shifting balance of power in the Indo-Pacific.
“This is clearly the biggest defence-industry agreement that has ever been struck between Japan and Australia,” declared Australian Defence Minister Richard Marles as he confirmed the purchase in Canberra. “This decision was made based on what was the best capability for Australia.”
Australia’s move to purchase Japanese-designed warships represents a culmination of mounting concerns in Canberra over the strategic ambitions of China in the Indo-Pacific, and a shift in Australia’s broader military doctrine—from regional deterrence to forward defense. The acquisition also highlights the growing interoperability between the navies of Japan and Australia—two allies of the United States and members of the Quadrilateral Security Dialogue (Quad), along with India and the US.
The Mogami-class frigates, part of the Japan Maritime Self-Defense Force’s (JMSDF) newest fleet additions, are designed for high-end warfighting and versatility. Equipped with 32 vertical launch system (VLS) cells, they can deploy long-range missiles, including Tomahawk cruise missiles—already integrated into Australia’s broader strike plans.
Described by Marles as “a next-generation vessel,” the Mogami-class is also notable for its low radar profile, multi-mission capability, and state-of-the-art sensors. The ships are outfitted with a robust suite of anti-submarine, anti-air, and anti-surface systems, making them ideal for operations in contested environments.
These frigates will replace the ageing Anzac-class frigates, which have served Australia since the 1990s. The first Mogami-class ship is expected to enter service by 2030, with the first three to be built in Japan and the remaining constructed in Western Australia—part of Australia’s commitment to boosting domestic shipbuilding capacity.
Australia’s decision is deeply rooted in strategic calculations. The Indo-Pacific has become the epicenter of geopolitical contestation, and the 2023 Defence Strategic Review (DSR) painted a sobering picture of Australia’s naval shortcomings in the face of rising threats.
While the DSR did not mention China by name, its recommendations were unmistakable: “Australia’s naval capabilities must be modernized and expanded to operate effectively in a highly contested environment.”
Analysts interpret this as a response to China’s growing naval power, which has expanded rapidly in both numbers and technological sophistication. Beijing has fielded an increasing number of guided-missile destroyers, aircraft carriers, and amphibious assault ships. Its assertiveness in the South China Sea, East China Sea, and Taiwan Strait has pushed regional actors like Japan and Australia into closer alignment.
The DSR’s conclusion was clear: Australia’s current fleet of 11 major surface warships was insufficient. Instead, the Royal Australian Navy (RAN) must field at least 26 major warships to defend national interests and project power across a maritime theater increasingly dominated by China.
The DSR’s findings prompted a dramatic reassessment of Australia’s naval force structure. A team of independent analysts concluded that the original plan to acquire twelve Tier-1 combatants (three Hobart-class destroyers and nine Hunter-class frigates) was not viable.
Instead, the recommendation was to reduce Tier-1 ships to nine and acquire eleven Tier-2 general-purpose frigates (GPFs)—faster to build, cheaper, and more versatile for regional operations. The Mogami-class fulfills this Tier-2 role while offering formidable capabilities.
Rear Admiral Sanjoy Roye (retd) explained the rationale behind this dual-tier strategy: “These vessels would add a lower-end combatant capability to the future RAN fleet mix. They will serve as a replacement for the eight 1990s-legacy Anzac-class multirole frigates.”
The revised fleet plan includes:
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Six Hobart-class destroyers (including upgrades)
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Six Hunter-class frigates (reduced from nine)
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Eleven Mogami-class GPFs
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Six optionally-crewed surface vessels, currently under joint development with the United States
One of the most controversial aspects of Australia’s naval modernization in recent years has been the conflict between domestic industry support and strategic necessity. The cancelled Attack-class submarine program with France, scrapped in favor of nuclear-powered Virginia-class subs under the AUKUS agreement, sparked diplomatic fury and raised questions about project stability.
The Mogami-class procurement aims to avoid such pitfalls by balancing foreign expertise with local production. Defence Industry Minister Pat Conroy stated that the first three ships will be built by Mitsubishi Heavy Industries in Japan, with the remainder constructed in Australian yards to stimulate jobs and ensure sovereign capabilities.
This hybrid model is also a nod to political concerns. Defence procurement in Australia is often intertwined with job creation and industrial policy, which have historically contributed to project delays, budget overruns, and shifting priorities.
For Japan, this agreement marks a historic milestone. Since World War II, Tokyo has maintained strict restrictions on weapons exports under its pacifist constitution. But in 2024, the government of Prime Minister Fumio Kishida eased export controls, allowing Japanese firms to bid on international defense tenders for the first time in decades.
Government spokesperson Yoshimasa Hayashi hailed the deal as “proof of trust in our nation’s high-level technology and the importance of interoperability between Japan’s Self-Defense Forces and the Australian military.”
“This is a big step toward elevating national security cooperation with Australia, which is our special strategic partner,” he added.
This breakthrough also opens the door for Japan to pursue further defense contracts in Southeast Asia and Europe, turning its once highly restricted defense sector into a potential export powerhouse.
Australia’s naval renaissance doesn’t stop with the Mogami-class. Under the AUKUS pact signed in 2021, Australia will acquire at least three Virginia-class nuclear submarines from the United States over the next 15 years, with plans to develop a new class of SSN-AUKUS submarines jointly with the UK.
While the submarine program could cost upwards of US$235 billion over three decades, it reflects a generational investment in Australia’s strategic deterrence.
Simultaneously, long-range strike capabilities are being enhanced across the RAN. The plan includes:
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Tomahawk cruise missiles for surface ships and submarines
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Naval Strike Missiles to replace legacy Harpoon systems
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Multi-domain missile integration for undersea and surface warfare
As Conroy stated, “The acquisition of these stealth frigates will make our navy a bigger navy, and a more lethal navy.”
Despite the ambition of these plans, serious challenges remain. Australia’s defense procurement system has been plagued by:
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Cost overruns
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Changing political priorities
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Industrial capacity constraints
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Delays in workforce training and infrastructure
To support its evolving strategic posture, the Australian government has pledged to increase defense spending to 2.4% of GDP—above the 2% NATO benchmark, but still below the 3.5% threshold some U.S. policymakers have urged.
Moreover, workforce and infrastructure readiness will be critical to the success of shipbuilding projects in Perth, Adelaide, and other key ports. If delays occur, Australia risks creating capability gaps at a time when regional tensions are escalating.
While Australia has not explicitly named China in its announcements, Beijing will be watching closely. The expanded fleet of long-range capable warships, integrated with U.S. and Japanese systems, poses a direct challenge to Chinese naval supremacy in the region.
China has previously accused the Quad and AUKUS of fueling an “arms race” in Asia. With Japan now entering the arms export market and Australia committing to a stronger forward-deployed navy, tensions are likely to increase.
On the other hand, the United States has praised Australia’s commitment to burden-sharing in the Indo-Pacific, viewing Canberra as a pivotal ally in balancing China’s rise.
