Australia-Japan Sign $7B Warship Deal

Australia and Japan have signed contracts for the first three of 11 warships under a landmark $7 billion defense deal. The agreement was announced by Defence Ministers Richard Marles of Australia and Shinjiro Koizumi of Japan in Melbourne on Saturday.

The Mogami Memorandum, as reported by Al Jazeera and Reuters, pledges to deepen military ties, including closer industrial cooperation. Japan’s Mitsubishi Heavy Industries will build three of the stealth frigates in southern Nagasaki Prefecture, while Australia’s Austal will construct eight in Western Australia.

The first Japanese-built warship is scheduled for delivery in 2029 and will enter service in 2030, according to Al Jazeera. The ships are designed to secure maritime trade routes and northern approaches as part of a larger surface combatant fleet. Australia’s government has committed A$305 billion to military spending over the next decade, aiming to boost naval power significantly.

The deal marks Japan's most consequential military sale since ending its export ban in 2014, according to Reuters. It reflects a shift away from postwar pacifism and aims to counter China’s rising influence. The warships will be deployed to defend critical maritime trade routes in the Indian and Pacific Oceans.

The agreement comes as Australia identifies China's growing military capabilities as a primary factor in regional security dynamics, per CNBC. This deal strengthens the defense ties between two of the United States’ closest allies, amidst shared concerns about shifts in the regional security environment. The first three frigates will be built in Japan before transitioning to an onshore build at the Henderson shipyard near Perth.