Japanese company Mitsubishi Heavy Industries have secured the $10 billion contract from Australia to build their navy’s new fleet of warships.

Defence Minister Richard Marles has come out and said this new fleet will replace the ANZAC fleet which has been in service since the end of World War 2. Marles also believes that this new deal will strengthen Australia’s relationship with Japan, hoping that it can allow for greater industry agreements in the future.

MHI and their Mogami frigates beat out German company ThyssenKrupp Marine Systems and their MEKO A-200 frigates. Despite the Japanese bid being more expensive, the Mogami frigates were favored due to their greater firepower and smaller crew to operate. Japan has also promised that Australia would receive the warships ahead of it’s own navy.

Defence Industry Minister Pat Conroy insists that the MHI deal is cheaper when the cost is calculated across the frigates’ entire lifespan.

Conroy hopes the first three warships being built in Japan will be ready by the end of the decade. The remaining 8 planned are set to be constructed in Western Australia.

Image: Image: Shutterstock – DLeng

Produced By: James Bale

Featured In Story: A/Prof. Adam Lockyer: Associate Professor in Strategic Studies, Macquarie University.

First aired on The Wire, Wednesday 6 August 2025