Japan has won Australia’s multi-billion dollar frigate project, in an epoch-making decision that will elevate the bilateral relationship to even greater heights as quasi-allies in coming decades.
On August 5, the Albanese government announced it has chosen Japan’s upgraded Mogami-class frigate over Germany’s MEKO-class frigate.
As part of its major naval modernization plan, Australia aims to acquire 11 new general purpose frigates by replacing the seven aging Anzac-class frigates commissioned between 1998 and 2006. The lead ship, HMAS Anzac, was already decommissioned in May 2024.
The first three ships will be built in Japan, with the first to be delivered to the Royal Australian Navy (RAN) in 2029 and enter service in 2030. The remaining eight will be built at Henderson shipyard in Western Australia.
In November 2024, the Australian government shortlisted Mitsubishi Heavy Industries (MHI) of Japan and Thyssenkrupp Marine Systems (TKMS) of Germany over Spanish and South Korean contenders to build Australia’s future frigates.
MHI has pitched the upgraded Mogami class, also known as 06FFM and New FFM, to Australia. TKMS has not revealed which ship design it offered to Canberra, instead keeping its proposal confidential.
Many media outlets have reported that TKMS’s bid proposed the MEKO A-200 design. But multiple defense industry sources in Australia and Japan told The Diplomat that the German company actually pitched two designs: the MEKO A-200 and its improved version, the MEKO A-210.
As evidence of this, Australia’s Minister for Defense Industry Pat Conroy said at a press conference on August 5 that the government had examined “all three designs,” meaning Germany’s two designs besides the upgraded Mogami.
Conroy emphasized that the upgraded Mogami was selected due to its advantages in cost, capability, and delivery schedule.
As for the cost, in Japan’s most recent defense budget for fiscal year 2025, the construction cost per improved Mogami-class vessel reached 105 billion yen ($710 million). In contrast, the MEKO A-200, which has already been exported to Egypt, South Africa, and Algeria, is cheaper to build. For example, the MEKO A-200 exported to Egypt cost only about 500 million euros ($581 million) per ship.
However, Sumomo Sayako, director of the International Cooperation Division in the Equipment Policy Department at the Japanese Ministry of Defense’s Acquisition, Technology and Logistics Agency told The Diplomat on July 1 that the life cycle cost of the upgraded Mogami, from development to disposal, will be about 30 percent cheaper than that of a conventional ship due to the longer operational period and reduced manpower requirements.
In particular, Sumomo pointed out that the improved Mogami-class can be used for 40 years, compared to the usual 30 years, and that it can be operated by only 90 people, whereas a conventional destroyer requires more than 150 people to operate. The MEKO A-200 requires a crew of about 120 people.
As for TKMS’s next-generation frigate, the A-210, it could potentially cost more to acquire than the improved Mogami class.
An Australian defense industry source pointed out, “There are many differences between upgraded Mogami and the A-210. There is no customer in the world right now for the A-210. There will be a lot of additional costs with finalizing the design, Australia will have to pay for this. Also, there is currently nowhere in the world building the A-210. TKMS will need to establish the ‘build yard,’ which will also be expensive, and Australia must pay for this as well.”
This argument is well known to the Australian government.
“The cost of acquisition of all three designs examined was comparable, but over the whole of life, the cost of the Mogami is much lower,” Conroy said at the press conference on August 5.
A document from Japan’s Acquisition, Technology & Logistics Agency on the upgraded Mogami-class frigate.
On the upgraded Mogami’s capabilities, the Australian government said at its press release on August 5, “The upgraded Mogami-class frigate boasts a range of up to 10,000 nautical miles, a 32 Cell Vertical Launch System, and is fitted with surface-to-air missiles and anti-ship missiles.”
Given that Australia has the third largest exclusive economic zone in the world, its frigates are required to have a high and persistent ocean-going capability, just like Japan, a fellow maritime nation.
The full load displacement of the Mogami class is 5,500 tons, while the improved Mogami class is larger, at about 6,200 tons.
The Japanese Defense Ministry said the improved Mogami will be fitted with longer-range missiles, upgraded multifunction radars and sensors, enhanced anti-submarine capabilities, and improved capabilities for various maritime operations. Specifically, the ship-launched, improved version of the Type 12 Surface-to-Ship Missile and the new ship-to-air guided missile will be equipped on the improved Mogami. The number of Mk.41 vertical launching system (VLS) cells, which serve as missile launchers, will also be doubled from 16 on the Mogami class to 32 on the upgraded Mogami. The upgraded Mogami will be closer to a missile frigate.
The upgraded Mogami “will also have the ability to fire Tomahawk cruise missiles, giving the Navy more vessels that can strike at longer distances – and taking our general purpose frigates’ strike range from 275 kilometers to 2,500 kilometers, an almost tenfold increase in strike range,” Conroy said.
The Mk.41 VLS is a missile launch system widely used worldwide and is capable of operating a wide variety of missiles, including Tomahawks and Standard Missiles.
And most importantly, the upgraded Mogami’s crew size is only 90. Just like the Japan Maritime Self Defense Force (JMSDF), the RAN is also short on manpower and is understaffed. The Australian government apparently wanted to obtain a ship that would be as compact and manpower-efficient as possible, yet still have excellent performance.
As for the delivery schedule, MHI and its subcontractor, Japan Marine United, are already in the midst of a rapid-paced construction plan for the improved Mogami class for the JMSDF. The first ship will be laid down in fiscal 2025 and commissioned in fiscal 2028. If construction progresses smoothly, a total of 12 ships will be completed by fiscal year 2032. Together with the 12 Mogami-class ships, the FFM series will be complete at 24 ships by fiscal year 2032. There have also been media reports that the first ship’s delivery to Australia will be prioritized during that time.
“Japan is one of the most high-tech industrial bases in the world – and we are really confident about Japan’s capability to deliver,” Australia’s Deputy Prime Minister and Defense Minister Richard Marles said at the press conference.
Like Japan, Australia has become increasingly concerned about China’s rapid military buildup and maritime expansion, and is rushing to strengthen its own naval capabilities.
The RAN currently operates only 10 major surface combatants. Many experts have pointed out that Australia needs 20 surface combatants because it is an island nation.
The first of the new frigates is scheduled to be delivered to Australia by 2029, and this delay is unacceptable. In this regard, Japan, which has continued to build Mogami-class at a rapid pace and is now embarking on construction of the improved Mogami, has a strong advantage.
Australia’s selection of the improved Mogami is significant for three reasons.
First, Japan has not previously exported finished defense equipment other than air defense and surveillance radars to the Philippines. This sale to Australia will help build a track record for Japan in exporting defense equipment, paving the way for exports to other nations.
Second, in recent years, against the backdrop of China’s maritime expansion, Japan has focused on strengthening security cooperation with Australia, a fellow Pacific nation. Operating the same frigate will increase interoperability between the JMSDF and the RAN, further strengthening their strategic collaboration as quasi-allies.
Third, the total cost of this project has been reported to be up to A$10 billion. But this only covers costs for the first three frigates until 2034. Australia surely needs to allocate additional budgets beyond 2035 for acquiring the remaining eight ships, building facilities, and allocating maintenance costs, etc.
Thus, the sale of the upgraded Mogami class marks a milestone for Japan. It will open a new chapter in the history of Japan’s defense industry and defense equipment exports.