Japan Nears Record Defense Export with Frigate Deal

A New Era in Japan-Australia Defense Cooperation

Japan has long faced challenges in exporting advanced defense equipment. However, recent developments have shifted the narrative as Japan secured a significant contract with Australia for the procurement of frigates worth up to US$6.5 billion. This milestone marks a pivotal moment in the bilateral relationship between the two nations.

The Royal Australian Navy (RAN) plans to acquire 11 upgraded Mogami-class frigates. After a rigorous and competitive tender process, Mitsubishi Heavy Industries’ (MHI) Mogami-class frigate was chosen as the best option to meet the capability requirements of the Australian Defence Force. The decision highlights the strategic importance of this partnership and reflects the growing trust between Japan and Australia.

Despite the positive news, several challenges remain. One key risk is that the upgraded Mogami class does not yet exist. It is a modified version of the current Mogami-class frigates, which Japan has already commissioned. The eighth frigate was recently commissioned, valued at JPY47.4 billion (US$332 million). The next phase involves building 12 upgraded Mogami frigates starting from Fiscal Year 2028. MHI received a contract for the first two in May.

Jennifer Parker, a defense expert at the Australian National University, noted that while there are risks, Japan’s strong track record in shipbuilding helps mitigate them. However, the schedule for delivering these frigates presents another challenge. The RAN expects the first Japanese-built frigate to be delivered in 2029 and enter service in 2030. The plan also includes transferring construction to Western Australia after the initial three ships are built in Japan.

This transition could pose difficulties, given the poor performance of Australian shipbuilders in meeting deadlines. Existing programs are already behind schedule, raising concerns that more frigates might need to be constructed in Japan.

Another challenge lies in the lack of commonality between the upgraded Mogami class and the RAN's current fleet. The Anzac class is being retired, and the BAE Systems Hunter class is set to arrive in 2034. This disparity could complicate integration efforts.

Additionally, MHI has no prior experience in building naval vessels overseas. Recent tensions with Australian shipbuilders, such as Naval Group of France and Luerssen of Germany, highlight the complexities of this deal. Jennifer Parker warned that if issues arise, the frigate deal could damage the relationship between the two countries.

Despite these risks, the Japanese government remains highly committed to the program, considering its strategic partnership with Australia second only to that with the United States. Australian Defence Minister Richard Marles emphasized the significance of this development in the bilateral relationship.

The RAN urgently needs these new frigates to replace its aging Anzac class. The surface combatant fleet will reach a low point of nine warships next year, the lowest since World War II. While the government aims to increase the fleet to 26 hulls, experts predict an extended period of risk in the late 2020s, during which capability gaps may persist.

The upgraded Mogami class offers enhanced capabilities. It displaces 4,800 tons, which is 700 tons more than its predecessor. At 466 feet, it is also 30 feet longer. The frigate features a 32-cell vertical launch system, doubling the magazine capacity of its MEKO A-200 rival. It also has a design life of 40 years.

In a press release, MHI highlighted the Mogami's "proven performance, reliability, technology, capabilities, multi-functionality … as well as reduced manpower requirements compared to conventional frigates, and scalability to easily enhance capabilities in the future."

This contract represents a major step forward for Japan in expanding its defense exports and strengthening its strategic ties with Australia. While challenges remain, the potential benefits for both nations are substantial.