Japan, Australia seal $14B warship deal to boost Indo-Pacific defense ties

Japan and Australia have finalized a major defense agreement worth up to AU$20 billion ($14.4 billion) to jointly develop a new fleet of advanced naval frigates, Kyodo News reported on Saturday.

The deal was confirmed following talks in Melbourne between Japanese Defense Minister Shinjiro Koizumi and Australian Defense Minister Richard Marles, who is also deputy prime minister.

Canberra said it plans to invest up to AU$20 billion over the next decade in the project.

The new fleet will be based on an upgraded version of Japan’s Mogami-class frigate and represents a rare case of Japanese-designed warships being exported abroad through a joint development framework.

Under current policy, Tokyo restricts direct arms exports but permits them in collaborative defense programs.

According to officials familiar with the agreement, the contract involves major Japanese firms, including Mitsubishi Heavy Industries. The first three of a planned 11 vessels will be constructed in Japan and delivered to Australia starting in 2029.

Koizumi said the agreement reflects a shared commitment to elevating bilateral ties, with Tokyo viewing Australia as a key security partner in maintaining stability across the Indo-Pacific region.

The move comes as Japan prepares to ease its defense export rules and expands cooperation with allies, including ongoing fighter jet development with Britain and Italy.