The Deal Structure
Australia and Japan signed a contract for 11 Mogami-class frigates under Project Sea 3000. Mitsubishi Heavy Industries will construct the first three upgraded 4,800-ton frigates in Japan, with the first delivery scheduled for December 2029. The remaining eight frigates will be subsequently built in Western Australia at the Henderson precinct shipbuilding facility. The entire program is slated to cost up to A$20 billion (US$14.4 billion) over the next decade, double the amount indicated two years prior.
Capabilities and Design
The upgraded Mogami-class frigates are described as one of the most advanced general-purpose frigates in the world. They are larger and far more capable than Australia's current Anzac-class frigates, offering greater availability of 300 days at sea annually. Armaments include ESSM Block 2 surface-to-air missiles in a 32-cell Mk 41 vertical-launch system, deck-mounted Naval Strike Missiles, MK 54 lightweight torpedoes, and a SeaRAM. The ships will feature Japanese systems and sensors including combat management system, sonar, and UNICORN integrated masts.
Strategic Importance
This represents Japan's largest-ever defense export and a major boost to its shipbuilding industry. The deal advances greater strategic alignment between Australia and Japan. Rear Admiral Stephen Hughes of the Royal Australian Navy described it as a game-changer that will allow the navy to jump a generation in technology. Defence Minister Pat Conroy called it the fastest acquisition for the Royal Australian Navy in peacetime. The deal is particularly significant as Australia's surface combatant fleet had fallen to its smallest size since World War II.
Industrial Partners and Supply Chain
Multiple subcontractors are involved in the program. Japanese company NEC is supplying nine types of equipment including sonars and UNICORN integrated masts. Rolls-Royce is providing MT30 gas turbines. The Australian government intends to build the next eight frigates in Australia as it expands shipbuilding facilities. Analysts suggest Western Australia could become a regional Mogami sustainment hub for the Indo-Pacific, potentially serving New Zealand, Indonesia, and India.
Regional Context
Japan recently eased decades-old restrictions on defense exports, enabling this landmark sale and potentially expanding Tokyo's arms sales across Asia. The Mogami deal could serve as a template for Japan's warship export strategy. Other Indo-Pacific nations including New Zealand, Indonesia, and potentially India are also looking at purchasing or building Mogami frigates. When complete, Australia and Japan will operate a combined fleet of 35 Mogami frigates. 
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