Japan and Australia's expanding defence partnership creates opportunities through joint naval programmes and exercises. 

 

As both nations boost their defence spending, Japan and Australia are crafting one of the Indo-Pacific's most substantial military partnerships. 

Japan's 2025 defence budget of JPY8.7 trillion (USD55 billion) represents its commitment to a five-year, JPY43 trillion (USD300 billion) defence plan through 2027. Australia's parallel investment of AUD55.7 billion (USD36.8 billion) for 2024 to 2025 focuses on Australia-UK-US (AUKUS) submarines and strengthening ties across the Pacific.

These investments build on a deepening military relationship. The 2007 Joint Declaration on Security Cooperation (JDSC) laid the groundwork, with its 2022 expansion marking a step change in the Japan-Australia collaboration on Indo-Pacific security. Through the JDSC, both nations conduct joint exercises, share military facilities and support Pacific Island nations' defence capabilities. 

Signed concurrently, the Reciprocal Access Agreement accelerates this cooperation, enabling swift joint deployments and the sharing of advanced defence technologies.

DSEI Japan 2025 brings defence contractors face-to-face with the procurement teams driving this modernisation effort. The convergence of these expanding defence budgets with industry innovation creates valuable opportunities for those following the evolution of the Japan-Australia partnership. Opportunities to meet with Australian delegates at DSEI Japan 2025 will include 179 attendees and 120 exhibitors, alongside 13 VIP delegation members and a government representative.

Australia’s defence strategy aligns with Japan’s

Australia's most recent defence strategy, outlined in the 2024 National Defence Strategy and 2024 Integrated Investment Program, prioritises ensuring that the Australian Defence Force is an integrated, agile military unit focused on advanced capabilities. 

Central to this approach is the AUKUS partnership, driving investments in nuclear-powered submarines, long-range strike systems, autonomous technologies and undersea infrastructure alongside bolstering the cyber and space domains.

The strategy emphasises rapid capability development and interoperability with allies like the US and Japan, and is being put into practice with joint exercises. These include Australia’s inaugural participation in Orient Shield 2025, a US-Japan air defence drill that focuses on integrated missile defence and F-35 fighter jet operations, as well as Talisman Sabre, where Japan’s Amphibious Rapid Deployment Brigade will train with US Marines in Australia to rehearse littoral warfare.

Research and development cooperation

While Japan is outside AUKUS and participation is therefore project- not member-based, the country collaborates closely with both nations on technologies similar to those in AUKUS Pillar 2, including AI-driven undersea drones, quantum computing for encrypted communications and cyber defence systems. 

Japan’s participation in Australia-US initiatives like the trilateral Research, Development, Test, and Evaluation (RDT&E) Projects Arrangement, signed in 2024, also aligns with AUKUS Pillar 2 goals. The arrangement focuses on advancing collaborative combat aircraft, autonomous systems and composite aerospace materials.

Mogami-class frigate programme opens sub-contracting possibilities

DSEI Japan 2025 offers concrete opportunities for defence contractors tied to Japan’s deepening naval modernisation partnership between Australia and the US. Mitsubishi Heavy Industries' (MHI) upgraded Mogami-class frigate design, shortlisted for Australia’s Project Sea 3000 programme, presents multiple subcontracting opportunities, particularly in localised production and specialised systems integration. 

Austal Australia’s Henderson shipyard hopes to support construction of eight out of the 11 frigates, creating demand for subcontractors in steel fabrication, outfitting and systems integration. 

Since MHI’s proposed design emphasises interoperability with Australian and US systems, there are potential possible avenues for participation from companies in both countries, including technology firms specialising in software integration and testing. 

With the first Australian-built frigate scheduled for completion by 2029, the programme’s accelerated timeline emphasises rapid industrial mobilisation, prioritising subcontractors with defence-certified capabilities.

Explore potential partnerships at DSEI Japan 2025

DSEI Japan 2025 is the forum where international companies can understand Japan's evolving defence posture, build relationships with key stakeholders and develop informed strategies for supporting Japan's defence modernisation efforts. With a large percentage of attendees from the Indo-Pacific region and strong representation from Japanese small and medium enterprises (48% of industry attendees), DSEI Japan 2025 provides an ideal environment for exploring potential industrial partnerships and understanding the local defence industrial base.

 

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