Australian Deputy Prime Minister and Minister of Defense Richard Mars (left) and Japanese Defense Minister Shinjiro Koizumi (right) pose for a commemorative photo with Eisaku Ito, President and CEO of Mitsubishi Heavy Industries, ahead of the signing of a contract with Japan to deliver the first three Mogami-class battleships in Melbourne on April 18, 2026. Japan agreed on April 18 in a deal to provide the Australian Navy with the first of about 12 stealth ships. The frigates are part of a broader military buildup by Canberra aimed at increasing its long-range firepower to deter China.
William West | AFP | Getty Images
Meanwhile, Canberra has spent A$20 billion on a fleet of 11 general-purpose frigates. The first three are manufactured by Mitsubishi Heavy Industries.
The new warship will be based on the improved Mogami-class frigate and will replace the Royal Australian Navy’s current Anzac-class frigates, which have been in service since the 1980s.
Japan’s Mitsubishi Heavy Industries beat German rival ThyssenKrupp Marine Systems to win the contract. Japan said Australia could receive the first of the refurbished warships ahead of its own navy, and the A$10 billion race could favor Mitsubishi Heavy Industries, according to Australian news outlet ABC.
Other companies involved in the deal include NEC Corp., Mitsubishi Electric Corp. and Hitachi Ltd., which will provide radar, antennas and other systems for the ships, the Nihon Keizai Shimbun reported.
Mitsubishi Electric’s stock price has recently increased by 3.64%, while Hitachi’s stock price has increased by a modest 0.8%. NEC stock fell 0.6%.
In its National Defense Strategy released on April 16, Canberra noted that China’s “growing national power and increasingly powerful military” will be a key factor in the security dynamics of the Indo-Pacific region.
The report added that the Chinese government will continue to use the People’s Liberation Army and China Coast Guard to assert its maritime and territorial claims in the South China Sea and East China Sea.
“The People’s Liberation Army’s efforts to intercept foreign warships and aircraft operating in international waters and airspace have become increasingly frequent and, in some cases, unsafe and unprofessional.”
