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Australia has tapped a Japanese shipbuilder to deliver its next-generation fleet of warships.

Getting into it: The Australian government has awarded a $6.5 billion contract to Mitsubishi Heavy Industries (MHI) for the construction of 11 Mogami-class frigates, marking the largest defense industry deal ever struck between Japan and Australia. Under the agreement, the first three vessels will be built in Japan and delivered by the end of the decade, with the remaining eight constructed in Western Australia. The fleet will replace Australia’s aging ANZAC-class frigates (from the 1990s) and significantly boost the Royal Australian Navy’s surface combatant capabilities.

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Each Mogami-class frigate is a stealth, multi-role warship designed for modern maritime warfare. The vessels are capable of deploying long-range surface-to-air and anti-ship missiles, and they have an operational range of up to 10,000 nautical miles (roughly double Australia’s ANZAC class). The frigates will also be equipped with cutting-edge sonar, radar, and a US-made combat management system, allowing for advanced threat detection and engagement. Notably, the ships require a crew of only 90 personnel, a significant reduction from the 170 needed to operate the current ANZAC-class ships, enhancing efficiency and lowering operating costs over the life of the fleet.

While initially seen as the more expensive option, the Mogami-class frigate was selected over Germany’s MEKO A-200 due to its superior combat systems, reduced crew requirements, and faster delivery schedule.

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In a statement, Australian Defence Minister Richard Marles said, “This does represent a very significant moment in the bilateral relationship between Australia and Japan,” adding, “there’s no other country in the world that is quite as aligned with Australia as Japan.”

This all comes as Australia continues to ramp up its military posture in response to growing regional instability, particularly China’s accelerating naval buildup and assertive actions in the South China Sea. Since 2017, Australian lawmakers have increased defense spending, mainly to acquire new military equipment and technology to counter China. In recent years, Australia has acquired HIMARS rocket systems, F-35s, Apache helicopters, and advanced missile systems to update its older military equipment.

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