Australia and Japan sign $7 billion stealth frigate defense deal

Saturday 18 April 2026 - 10:20

By: Dakir Madiha

Australia and Japan sign $7 billion stealth frigate defense deal

Australia and Japan have formalized a major defense agreement worth 10 billion Australian dollars, about 7 billion US dollars, to supply stealth frigates to the Australian navy. The deal marks Japan’s largest defense export since World War II and signals a shift in regional security cooperation.

The agreement was signed in Melbourne by Australian Defence Minister Richard Marles and Japanese Defence Minister Koizumi Shinjiro, confirming a plan first announced in August 2025. Under the contract, Mitsubishi Heavy Industries will deliver three upgraded Mogami class frigates built in Japan, with the first scheduled for delivery by 2029.

An additional eight vessels will be constructed in Western Australia at the Henderson shipyard, bringing the total fleet to 11 ships. Australian officials described the program as the fastest peacetime naval acquisition in the country’s history and one of the most advanced multi role frigate systems available.

The deal comes as both countries respond to shifting security dynamics in the Indo Pacific. Australia plans to expand its major surface combat fleet from 11 to 26 ships over the next decade as part of a broader 55 billion Australian dollar investment. The new frigates will replace aging Anzac class vessels and feature 32 Mk 41 vertical launch systems capable of deploying up to 128 air defense missiles, significantly increasing current naval firepower.

For Japan, the agreement represents a strategic departure from decades of postwar military restraint. Tokyo is positioning itself as a defense exporter, competing with European suppliers such as Thyssenkrupp Marine Systems, which also bid for the contract.

The program also carries industrial implications. Australian shipbuilder Austal is expected to play a key role in constructing the locally built vessels, supporting domestic manufacturing and skills development.

The partnership aligns with broader regional cooperation frameworks. Both countries are members of the Quad alongside India and United States. Analysts view the agreement as part of a growing model of defense industrial collaboration among allied nations aimed at strengthening collective capabilities in the Indo Pacific.