Japan’s Mitsubishi Heavy Industries won a multi-billion dollar deal to build a fleet of advanced naval frigates for Australia, boosting Tokyo’s ambitions to become a major exporter of military equipment and develop its defense sector.

Japan has struggled to export cutting-edge defense equipment. However, past disappointments have been turned on their head after Japan won selection for a lucrative Australian frigate requirement worth up to US$6.5 billion.

Japan clinched a landmark A$10 billion ($6.5 billion) deal on Tuesday to build warships for Australia, marking Tokyo's most consequential defence sale since ending a military export ban in 2014 as it steps away from postwar pacifism to counter China.