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Australia and Japan Forge $10B Defence Agreement for Warships

Australia and Japan Forge $10B Defence Agreement for Warships

Post by : Bianca Haleem

Australia and Japan have entered into a significant AU$10 billion (approximately US$7 billion) defence agreement for the supply of advanced warships, marking a pivotal moment in their bilateral ties. This is Japan's largest military export agreement since the repeal of its arms export ban in 2014.

Formalized by Defence Minister Richard Marles of Australia and his Japanese counterpart Shinjiro Koizumi, the agreement underscores their commitment to executing the warship program effectively while deepening defence collaboration.

Mitsubishi Heavy Industries is set to produce three upgraded multi-mission frigates in Japan, with construction slated to start in 2029. Moreover, an additional eight frigates will be manufactured within Australia, promoting domestic industry and enhancing local defence production capabilities.

The Japanese Ministry of Defence has welcomed this agreement as a crucial step in fostering stronger bilateral relations and reflects increased security cooperation in the Indo-Pacific region.

This agreement aligns with Australia’s broader defence strategy, aiming to boost military expenditure to 3% of GDP by 2033, up from roughly 2% currently, signaling a robust commitment to enhancing naval power amid evolving regional security dynamics.

April 18, 2026 12:34 p.m. 1285
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