Matthew Knott – August 5, 2025 • 2:17pm
Japanese firm Mitsubishi Heavy Industries has won a keenly fought contest to build $10 billion worth of warships for the Australian navy, beating its German rival and overcoming concerns about a lack of export experience.
Strongly backed by Japan’s diplomatic and military apparatus, Mitsubishi Heavy Industries won favour with its ultra-modern Mogami frigate, which was widely acknowledged as a more advanced warship than German firm TKMS’s Meko A-200 vessel.
Japanese officials have also said that the United States was backing its proposal as a way to boost collaboration among key Indo-Pacific partners.
TKMS sought to capitalise on the fact it has sold ships to navies around the world, while modern Japan has no experience exporting warships. The German bid was also believed to be cheaper in the short term, though Japan insisted its offer was more cost-effective over the long term.
Under the general purpose frigate programme, 11 warships would be built to replace the ageing Anzac-class frigates, which were regarded as the workhorse vessel of the Australian navy, and were being gradually retired from service.
Australia Defence Minister Richard Marles said the announcement represented “a very significant moment” in Japan-Australia relations, but insisted geopolitics did not influence the decision.
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“The Mogami is absolutely the best ship, and that was very clear in all the advice that we received,” Marles told reporters on Monday.
Defence Industry Minister Pat Conroy said: “On cost, capability and schedule, the Mogami was the clear winner on all three factors. It was the clear winner, and the source evaluation reports reflected that.”
A decision on the winning bid was initially expected to be made closer to Christmas, but the Australian Government sped up its announcement to ensure the first vessel arrives on time.
In a bid to avoid the cost overruns and delays that have marred the Hunter-class frigate programme and other defence projects, the government ordered that the first three general-purpose frigates be built overseas and that minimal changes be made to the existing ship design.
Conroy said the only changes to the Mogami would be translating the language of the ship’s combat system and any modifications required by Australian law.
The first frigate was scheduled to be delivered in 2029, with most of the ships to be built at the Henderson shipyards in Perth.
A lack of support from the Japanese government was blamed for the failure to win a contract to build a fleet of submarines for Australia. That contract went to France’s Naval Group before being scrapped when the AUKUS pact was agreed.
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Tokyo was determined to correct that mistake, arguing that awarding the contract to Mitsubishi would solidify Australia and Japan as “special strategic partners” in the Indo-Pacific, allowing their navies to operate more closely at a time of rising tensions in the region.
Boasting high levels of automation, the Mogami needs only 90 crew, while other frigates require about 120.
“The upgraded Mogami‑class frigate is the best option for our navy, boosting its capability to put to sea,” Conroy said.
“It will take our general purpose frigates from being able to fire 32 air defence missiles to 128 missiles, giving our sailors the cutting‑edge weapons and combat systems they need to prevail in an increasingly complex environment.”
Osamu Nishiwaki, the deputy commissioner of Japan’s Acquisition, Technology and Logistics Agency, which oversees defence exports, recently told this masthead that the United States was backing Japan’s bid.
“I understand that, at least informally, they are very much supporting the Japanese side because it’s very natural,” he said during a recent visit to Canberra.
“It’s the Indo-Pacific: the Australian navy, Japan Self-Defense Forces and the US Navy are operating together, not the Germans.
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“So for them, it’s a natural choice to choose the Japanese model, rather than all of a sudden Germany.”
Jennifer Parker, an expert associate at the Australian National University’s National Security College, said she was unsurprised by the decision, given the Mogami was widely acknowledged to be the superior ship.
However, Japan’s bid carries risks that will need to be addressed.
“The upgraded Mogami we are buying doesn’t yet exist and is already quite a different ship from the existing version,” said Parker, a former naval officer.
“The Australian navy has had a chequered recent history with these type of projects, but we are not in a position where this can go wrong.”
The Australian Government should investigate whether it can bring forward the delivery of the first vessel to ensure the navy is not left with a capability gap, she said.
– Sydney Morning Herald