By John Q. Hosedrinker 
In a significant win for Mitsubishi Heavy Industries (MHI), the Australian government has selected the Japanese company’s Mogami frigate to build the nation’s new warship fleet, beating out German rival ThyssenKrupp Marine Systems. The initial contract for the first three vessels is valued at $10 billion, with the remaining eight ships to be built in Western Australia. This decision, which includes Japan giving Australia priority access to the warships and the backing of the United States, marks a major defense industry agreement between Australia and Japan, ensuring a more capable and modern naval fleet. The first of these frigates is expected to be in service by the end of the decade, replacing the older ANZAC-class ships and filling a critical capability gap.
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Australia picks Japan to build $10b frigates after a competitive bidding process, signaling a significant shift in the nation’s defense strategy. This is a landmark deal, and it’s fascinating to consider the various implications. Initially, it appears to be a solid agreement. Japan has been selected to construct a fleet of eleven frigates for the Australian navy, with a total cost of $10 billion. The initial three vessels will be built in Japan, and the remaining eight will be constructed in Western Australia, ensuring that the local industry benefits from the agreement.
The Japanese offering a faster delivery schedule than their own navy’s upgrades for the same type of ships was probably a critical factor. Getting the first of the upgraded warships ahead of their own navy would have been a persuasive argument. This is a major victory for Japan, marking a significant leap into the international military hardware market. They’ve never been a major exporter of warships, so this is a significant entry into the field.
It’s easy to see how this could open doors for Japan to further expand its exports in the future. It’s worth clarifying that the $10 billion figure covers the entire project, including the cost of the eleven frigates, the workforce, shipbuilding facilities, and the necessary missiles. It’s interesting to think that it includes elements designed to strengthen Australia’s defense capabilities in concert with its local allies. The strengthening of Japan’s defense industry is beneficial for Japan’s economy and for its Western allies throughout the Pacific Rim.
Speaking of which, I’ve heard that the Japanese are reliable and tend to deliver. The price seems quite good for what’s on offer, but hey, I’m a Canadian, so that is just me saying that! Others, however, seem a bit wary, considering that some might find the deal unfair. And while it’s tempting to imagine that certain nations may react with tariffs, in reality, these are the kinds of partnerships that strengthen relationships and stability within the region.
Then there are questions, like whether Australia has the capability to build its own ships. They have an excellent naval shipbuilder (Osborne) with highly skilled engineers. While it’s true they do have the ability to design and build frigates domestically, the current deal involves a “ramp up” phase. The Japanese will build the initial ships and also help to train Australian engineers to ensure they have the necessary expertise.
The main reason for choosing Japan was the urgent need to get the ships into service. Japan’s offer to prioritize Australia over its own needs was the key factor that swayed the decision. They have been building up their shipbuilding capabilities and skills over the years due to their surrounding environments. This includes strategically aligning with allies and building a strong domestic defense industry.
Overall, it’s likely that this deal is going to be beneficial for all involved. As the country expands its naval forces over the coming decades, it will depend on partnerships to strengthen its defense capabilities. The aim is for the Japanese to construct the first few ships and also teach Australian engineers how to build them, so that they can then be built in Australia by the Australians.