Lockheed Martin Wins $724 Million Aegis Order for Japan’s New Missile Defense Ships

Lockheed Martin has received a $724 million contract modification to deliver Aegis combat systems for the first two of Japan’s new Aegis System Equipped Vessels, the large missile defense ships Tokyo is building in place of the cancelled Aegis Ashore sites. The award appeared in the Pentagon’s daily contract announcement for 29 September.

The modification, valued at $723,997,537, went to Lockheed Martin Rotary and Mission Systems in Moorestown, New Jersey. It is being handled as a Foreign Military Sales case for Japan, with the Missile Defense Agency as the contracting activity.

Lockheed Martin Aegis Contract for Japan’s ASEV Ships

The Missile Defense Agency in Dahlgren, Virginia, is the contracting activity. About $220.1 million was obligated at award, all of it Japanese Foreign Military Sales money. The notice describes the deal as a non-competitive modification to an existing contract and says it lifts that contract’s total value from $1.64 billion to $2.36 billion.

This is not the first large Aegis award tied to the ships. In November 2024 the Pentagon announced a $579 million modification for development, testing and integration of equipment, software and hardware in support of the same vessels, with work running through August 2026. The wording of the new award points to delivery of the finished systems rather than development.

What Are Japan’s ASEV Ships?

Japan cancelled Aegis Ashore in 2020 and chose sea-based platforms instead. The Aegis System Equipped Vessels are meant to take over ballistic missile defense patrols now flown by Japan’s existing Aegis destroyers, which frees those ships for other missions, according to Naval News.

The ships use the AN/SPY-7 radar, another Lockheed Martin product, in place of the SPY-1 fitted to current destroyers. Naval News describes the SPY-7 as offering roughly five times the tracking capability of the older radar, with better detection of lofted-trajectory missiles and simultaneous launches. Planned weapons include SM-3 Block IIA and SM-6 interceptors, Type 12 anti-ship missiles and Tomahawk cruise missiles. The same report estimates the cost at about 392 billion yen, or $2.5 billion, per vessel.

ASEV Compared With Japan’s Atago-Class Destroyers

Build Schedule for the Two Ships

Lockheed Martin Aegis Awards in Two Days of Notices

The Japan award was one of several Lockheed Martin notices on 28 and 29 September, and Aegis work at Moorestown featured in more than one of them. Suppliers were busy too, as in L3Harris’ $6 billion THAAD propulsion deal with Lockheed.

The US Navy’s own Aegis fleet keeps growing as well, with the keel of the next Flight III destroyer laid this month at USS John E. Kilmer.

Lockheed Martin Company Profile

Japan ASEV and Aegis Contract FAQ

What is ASEV?

ASEV stands for Aegis System Equipped Vessel, a large ballistic missile defense ship class Japan is building at Mitsubishi Heavy Industries and Japan Marine United.

How much is the Lockheed Martin contract worth?

$723,997,537, a modification to an existing Missile Defense Agency contract under a Foreign Military Sales case.

Who is paying for it?

Japan. The notice lists $220.1 million of Japan Foreign Military Sales funds obligated at award.

Is this the first Aegis award for the ASEV ships?

No. A $579 million modification for development, testing and integration was announced in November 2024.

Why did Japan build ASEV ships?

Japan cancelled the Aegis Ashore land sites in 2020 and moved to sea-based ballistic missile defense platforms instead.