Australia and Japan signed contracts Saturday launching a landmark A$10 billion ($7 billion) deal to supply the Royal Australian Navy with advanced warships. The agreement covers the first three upgraded Mogami-class multi-role frigates, with eight more to follow, built in Australia.

The signing ceremony took place aboard the Japanese Mogami-class frigate JS Kumano in Melbourne, where Australia's Deputy Prime Minister and Defence Minister Richard Marles and Japan's Defence Minister Shinjiro Koizumi formalized the contracts with Mitsubishi Heavy Industries. Marles described the partnership as creating a "seamless" defence industrial base, stating, "There is no country in the world with whom we have a greater strategic alignment than Japan." Koizumi called it a "major step" to elevate bilateral ties, adding, "This marks a new beginning for us and for our commitment to Australia."

The frigates, equipped with 32-cell vertical launch systems, anti-ship and surface-to-air missiles, and capable of embarking MH-60R Seahawk helicopters, will replace Australia's aging Anzac-class fleet. Designed for anti-submarine warfare, surface strikes, and air defense, each vessel requires a crew of about 90 personnel and offers a range of up to 10,000 nautical miles. The first ship is slated for delivery in December 2029, entering service in 2030, marking the fastest acquisition of a surface combatant in Royal Australian Navy history.

While the initial three will be constructed at Mitsubishi's Nagasaki shipyard, the remaining eight are set for production at the Henderson shipyard near Perth by Australian firm Austal, supporting long-term local shipbuilding. The total program, part of Project Sea 3000 Phase 2, is estimated at up to A$20 billion, including infrastructure upgrades. Mitsubishi's bid edged out Germany's ThyssenKrupp Marine Systems due to superior capabilities, cost, and timelines.

This marks Japan's largest postwar defense export since lifting its ban in 2014, following radars to the Philippines. It underscores Tokyo's shift from pacifism, enhancing interoperability with allies amid China's expanding naval presence in the Indian and Pacific Oceans. Australia aims to deploy the ships to secure maritime trade routes and northern approaches. Officials emphasized deterrence to maintain regional stability, with Marles noting Japan's role as an "industrial powerhouse."

The deal accompanies a "Mogami Memorandum" reducing industry barriers and separate pacts on drone data sharing and cyber defense. It bolsters the quasi-alliance between the two nations, aligning with Australia's 2026 defence strategy and Japan's export reforms.