Japan and Australia have formalized agreements to deepen cooperation across defense, energy security, and critical minerals, securing billions in contracts and investments amidst the ongoing Iran war and its impact on global supply chains. The agreements include a AU$10 billion ($6.5 billion) fleet of Japanese-designed warships and a AU$1.3 billion ($930 million) investment in critical minerals projects. This expansion of military and resource control comes as attacks on Iran by the United States and Israel began in late February.
War Machine Profits
Two weeks prior to Monday's meeting, Japanese and Australian defense ministers signed contracts for the first three of the AU$10 billion ($6.5 billion) warship fleet. Mitsubishi Heavy Industries is slated to build these initial three Mogami-class frigates in Japan. Australia plans to construct an additional eight frigates in a shipyard located in Western Australia state. This substantial investment in military hardware directly benefits corporations like Mitsubishi Heavy Industries, expanding the reach of the military-industrial complex under the guise of national security.
Resource Grab for Capital
The prime ministers also announced the "elevation of critical minerals as a core pillar of our economic security relationship." Australia will provide up to AU$1.3 billion ($930 million) to support critical minerals projects involving Japan. These agreements explicitly target China's control and manipulation of the global production of heavy rare earths, which are essential for manufacturing powerful, heat-resistant magnets used in defense and electric vehicle industries. A joint statement expressed "strong concerns over all forms of economic coercion, and the use of non-market policies and practices that are leading to harmful overcapacity and market distortions, as well as export restrictions, particularly on critical minerals." This move secures vital resources for capitalist production, ensuring continued profit streams for corporations reliant on these materials.
Securing Capital's Energy Lifelines
Japanese Prime Minister Sanae Takaichi and Australian Prime Minister Anthony Albanese held strategic discussions on Monday, focusing on the "enormous impact" of the effective closure of the Strait of Hormuz on the Indo-Pacific. Takaichi stated that Japan and Australia would "closely communicate with each other in responding with a sense of urgency." Australia currently supplies almost half of Japan’s liquefied natural gas, while Japan is one of Australia’s top five suppliers of refined gasoline and diesel. Albanese recently traveled to Singapore, Brunei, and Malaysia in an effort to shore up supplies of gasoline and diesel following disruptions caused by the attacks on Iran. The joint statement on energy security reaffirms a commitment to "navigate the current energy crisis together and maintain open trade flows of essential energy goods including liquid fuels and gas," prioritizing the uninterrupted flow of resources for industrial capital over the needs of the working class.
The State Serves Capital
Albanese claimed that the bilateral agreements would "benefit the populations of Japan and Australia," stating that Australians would be "less vulnerable to global shocks like we are seeing right now because of conflict in the Middle East." However, the agreements primarily focus on securing supply chains and enhancing defense capabilities, which directly serve corporate interests and geopolitical power projection. The statement on economic security cooperation commits to consulting on contingencies "including those related to geopolitical tensions, economic coercion or other significant market interruptions," framing state action as a mechanism to protect accumulated wealth and market stability for capital. The state, through these agreements, acts as an enforcer and facilitator for transnational corporations, ensuring the continued extraction of resources and expansion of military-industrial profits under the guise of national security and economic stability.