Australia, Japan Sign Contracts to Start $7 Billion Warship Deal

SYDNEY, April 18 (Reuters) – Australia and ⁠Japan ⁠signed contracts on Saturday ⁠launching their landmark A$10 billion ($7 billion) deal ​to supply Australia with warships, Tokyo’s most consequential military sale since ‌ending a military export ‌ban in 2014.

Defence Ministers Richard Marles and Shinjiro ⁠Koizumi ⁠signed a memorandum “reaffirming the Australian and Japanese governments’ shared commitment ​to the successful delivery” of the warships, Marles said in a statement.

The deal struck in August anchors Japan’s push away ​from its postwar pacifism to forge security ties beyond ⁠its alliance ⁠with the U.S. to ⁠counter ​China.

Mitsubishi Heavy Industries is to supply the Royal Australian Navy ​with three upgraded ⁠Mogami-class multi-role frigates built in Japan from 2029. Eight more frigates will be built in Australia.

Japan’s Defence Ministry posted on X that Koizumi and Marles welcomed the “conclusion of ⁠contracts for General Purpose Frigates, and confirmed to further strengthen ⁠bilateral defense ties” in the signing in Melbourne.

Contracts were signed for the first three frigates, to be built in Japan, before there is a “transition to an onshore build” at the Henderson shipyard near Perth in Western Australia, Marles said.

Australia plans to deploy the ships – designed to hunt submarines, strike surface ships ⁠and provide air defence – to defend critical maritime trade routes and its northern approaches in the Indian and Pacific Oceans, where China’s military footprint is expanding.

($1 = ​1.3955 Australian dollars)

(Reporting by Sam McKeith in ​Sydney; Editing by William Mallard)

Copyright 2026 Thomson Reuters.

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