Australia plans to sign $10 billion warship deal with Japan

Australia will spend $10 billion over the next decade to acquire warships from a Japanese company.

Mitsubishi Heavy Industries won the Government contract over a rival German company.

The first three ‘frigates’ (warships) under the deal are scheduled to arrive in Australia in 2029.

Defence Minister Richard Marles said subsequent warships from the deal will be built in Western Australia.

Warships

Australia’s deal with Mitsubishi Industries will see the addition of ‘Mogami-class frigates’ to the navy.

The warships have a range of 10,000 nautical miles without re-fueling and have surface-to-air missiles.

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Mitsubishi will build the first three ships in Japan. The Government estimates the first ship will operate in Australian waters by 2030.

The Government said it wants to then move the project to a shipbuilding yard in southern Perth.

Spending

The $10 billion frigate deal is part of a broader Government plan to modernise the Australian Defence Force (ADF) over the next 10 years.

The Trump administration has called for Western allies to increase their defence spending.

In the 2025/26 budget, the Government estimated it would spend $51.5 billion on defence.