Japan’s first major arms export since WWII: Australia frigate deal

Australia’s selection of Mitsubishi Heavy Industries (MHI) as its preferred supplier for a new frigate contract marks a major advance in Japan’s efforts to become a significant arms exporter amid rising regional tensions and strained defence supply chains, according to the latest article by the Financial Times.

The $6.5 billion deal, announced this week and expected to be finalised early next year, represents Japan’s first international sale of a complete lethal defence platform since World War II. It is seen as a model for future exports of warships, missiles, and radar systems.

Experts say the deal comes at a time of increased global defence spending driven by conflicts in Ukraine and the Middle East, as well as growing military build-ups by U.S. allies in the Indo-Pacific to counter China’s rise.

Since lifting its near-total arms export ban in 2014, Japan has struggled to secure major contracts, including a $35 billion submarine deal lost to France in 2016. Analysts note that Japan’s offer this time meets urgent supply shortfalls faced by allies such as Australia.

MHI’s upgraded Mogami-class frigate, requiring 90 crew members compared to Germany’s 120, offers longer range and greater weapons capacity, aligning with Australia’s operational needs. The company has committed to delivering the first vessel by 2029 to fill a capability gap following the retirement of Australia’s Anzac-class frigates. The frigate is also designed for interoperability with the U.S. Navy.

Despite a higher initial price, Australian officials contend the total cost will be lower due to reduced personnel and weapons expenses and longer hull life.

Japan is also in talks to collaborate on undersea autonomous technologies under the Aukus security pact between Australia, the UK, and the U.S., highlighting growing Tokyo-Canberra defense ties. Japan is concurrently developing a fighter jet with the UK and Italy and has advanced missile and space technologies with export potential. In 2023, Japan amended export rules to permit Patriot missile shipments to the U.S. for aid to Ukraine.

Arms exports remain sensitive in Japan due to its pacifist constitution, with lethal sales restricted to countries not engaged in active conflicts. Meanwhile, domestic defense demand is rising, creating production capacity and labor challenges. Kawasaki Heavy Industries has reported difficulty expanding its workforce amid surging orders.

Japan will build the first three frigates domestically, with remaining vessels constructed in Australia by local partner Austal. Experts warn Japan’s limited experience in overseas defense maintenance and supply chains could pose risks to delivery schedules and bilateral relations.

If successful, the deal could position Japan as a competitive arms exporter, offering an alternative to U.S., European, and South Korean suppliers, particularly for countries unable to afford American equipment.

By Tamilla Hasanova