Australia and Japan Forge Historic $6.5 Billion Naval Defense Pact
Tokyo, Monday, 27 April 2026.
Australia and Japan’s $6.5 billion agreement for Mogami-class frigates marks Tokyo’s largest post-WWII military export, deepening Indo-Pacific security ties and sending Mitsubishi Heavy Industries’ shares surging.
A Generational Leap in Naval Capability
On April 18, 2026, Australian and Japanese defense officials convened in Melbourne aboard the JS Kumano to formalize the Project Sea 3000 contract [4][8]. The agreement, overseen by Australian Defence Minister Richard Marles and Japanese Defense Minister Shinjirō Koizumi, charts the acquisition of 11 upgraded Mogami-class frigates for the Royal Australian Navy [4][5][8]. The comprehensive shipbuilding effort is projected to cost up to 20 billion Australian dollars (14.4 billion United States dollars) over the ensuing decade [4]. By replacing its 7 aging Anzac-class frigates with 11 new Mogami-class vessels, the Royal Australian Navy will increase its frigate fleet size by 57.143 percent [4].
Industrial Strategy and Production Timelines
To expedite deployment