Australia and Japan have signed a major agreement to build warships, in a project worth around 10 billion Australian dollars (about 6.5 billion US dollars).
This is Tokyo's most significant military sale since the lifting of the ban on military exports in 2014.
Reuters writes that Defense Ministers Richard Marles and Shinjiro Koizumi signed a memorandum that "reaffirmed the joint commitment of the governments of Australia and Japan to the successful realization" of the warships.
Under the agreement, the first three ships will be built in Japan by Mitsubishi Heavy Industries and are expected to be delivered within three years. Meanwhile, Australia plans to build eight more ships at a shipyard in Western Australia.
The signing ceremony took place aboard a Japanese warship, anchored near the city of Melbourne, and was attended by the defense ministers of both countries.
These new ships will replace Australia's current fleet, which is considered outdated and more vulnerable to modern technologies such as missiles and drones.
Australian officials have described the project as a major step towards strengthening the country's navy. The first ship is expected to arrive in Australia in 2029.
The agreement is also seen as a strengthening of military cooperation between Japan and Australia. Japan is significantly increasing defense investment and expanding partnerships beyond its main ally, the United States.
One of the main reasons why Australia chose the Japanese model is that these ships require fewer personnel to operate, reducing costs and increasing efficiency.
The new ships will be equipped with modern missiles and will also have the ability to operate combat helicopters, making the Australian fleet stronger and better prepared for future challenges.