MELBOURNE — Japan and Australia have finalized a major defense agreement worth up to AU$20 billion ($14.4 billion) to jointly develop a new fleet of advanced naval frigates, Kyodo News reported on Saturday.
The agreement was confirmed after talks in Melbourne between Japanese Defense Minister Shinjiro Koizumi and Australian Defense Minister Richard Marles.
Canberra said it plans to invest up to AU$20 billion over the next decade in the project.
The new fleet will be based on an upgraded version of Mogami-class frigate and marks a rare case of Japanese-designed warships being exported through a joint development framework.
Under current policy, Tokyo limits direct arms exports but allows them in collaborative defense programs.
Officials familiar with the agreement said the contract involves major Japanese companies, including Mitsubishi Heavy Industries.
The first three of 11 planned vessels will be built in Japan and delivered to Australia starting in 2029.
Koizumi said the deal reflects a shared commitment to strengthening bilateral ties, with Tokyo viewing Australia as a key security partner in preserving stability across the Indo-Pacific region.
The agreement comes as Japan prepares to ease defense export rules and deepen cooperation with allies, including an ongoing fighter jet program with United Kingdom and Italy.
Source: Saudi Gazette