A model of a new jet fighter named Tempest is shown at the Farnborough Air Show in Farnborough, England, July 16, 2018
Britain and Japan are close to an agreement to merge their next-generation Tempest and F-X fighter programs , the two countries aim to reach an agreement on a new joint fighter project by the end of the year.
It will be the first time Japan has sought a non-U.S. partner for a major military program and the first major cooperation between Tokyo and London, exceeding expectations at the time of negotiations five years ago.
"It will be an equal partnership between Japan and the UK," said a source with knowledge of the plans. He added that it would cost tens of billions of dollars.
Efforts to merge Japan's F-X program, led by Mitsubishi Heavy Industries (MHI) (7011.T), and Britain's Tempest program, managed by BAE Systems PLC (BAES.L), by December have not been previously reported.
The sources asked to remain anonymous because they were not authorized to speak to the media.
Another source said: "Our main aim is to build a common jet and there may be slight differences in the design for each country."
Another of the three sources said the UK could handle Europe orders, while Japan will be responsible for the Asian market.
Cooperation will spread development costs, while exports will increase production batches and lower the price of each aircraft, helping both countries expand their defense budgets.
This would represent a deepening of security ties between two close allies of the United States. London is taking a greater military role in Asia, while Tokyo is expanding defense cooperation beyond Washington amid a strategic "tilt" toward the Indo-Pacific region.
Japan's policy, driven by the late former Prime Minister Shinzo Abe, to increase Tokyo's influence over its neighbors has taken on added urgency after Russia's invasion of Ukraine, which Moscow described as a "special operation."
The shift to European partners comes amid rising defense spending in Japan, with the budget expected to double over the next decade as Prime Minister Fumio Kishida sticks to Abe 's national security agenda and fulfills an election pledge to "significantly" increase military spending. Ichiban.
Japan's Defense Ministry said: "We hope to decide how to cooperate by the end of this year and are considering various possibilities."
The British Ministry of Defense had no immediate comment. The country's air force chief, Air Marshal Mike Wigston, told a conference on Thursday that the UK was "exploring opportunities for collaboration and sharing our technical expertise with a range of international partners, including Japan and Italy".
Another source said Britain planned to provide an update on the Tempest at next week's Farnborough air show, without elaborating.
Japan's partnership with the UK provides opportunities for BAE and other European Tempest companies such as Rolls-Royce (RR.L), missile maker MBDA and Italian defense group Leonardo (LDOF.MI) to Tapping into a growing market long dominated by U.S. companies.
Efforts to merge fighter programs come as efforts to merge fighter programs have deepened cooperation between Britain and Japan in recent years, ranging from the JNAAM missile project to sensor work and developing an engine demonstrator.
"You can see where this is going," said Douglas Barrie, a senior fellow in military aerospace at the think tank IISS.
It has been more than 20 years since Mitsubishi Heavy Industries, makers of the World War II era Zero fighter , and US defense conglomerate Lockheed Martin built Japan's F-2 fighter , a short-wing derivative of the F-16 Fighting Falcon. .
Lockheed, which later developed the F-35 stealth aircraft, was also expected to help Mitsubishi Heavy Industries build the F-X, the F-2 replacement Japan hopes to field in the 2030s to counter advanced fighters from China.
Japanese Defense Ministry officials estimate that the project cost to develop the F-X will be about $40 billion, of which $700 million has been allocated this year.The
BAE-led Tempest project, designed to replace the Eurofighter Typhoon fighter jet, has a government budget of £2 billion ($2.38 billion) until full development begins in 2025.
It is one of two European programs for next-generation air power with the Franco-German-Spanish Future Combat Air System and is currently locked in partners Airbus (AIR.PA) and Dassault Aviation (AM. PA) differences.
Lockheed proposed using F-22 Raptor airframes and F-35 components for the F-X in 2018, but sources said U.S. control of the sensitive technology meant Washington could dictate when and how Japan would maintain and upgrade it. its aircraft, the tentative partnership ended this year.
A spokesman for Lockheed said questions about the program should be referred to the Japanese government.
For Japanese companies that were banned from exporting arms overseas until 2014, the partnership is an opportunity to access foreign markets and European technology with potentially fewer restrictions than those imposed by Washington.
Tempest "is a flexible structure that lends itself to many forms of cooperation," said defense analyst Francis Tusa.
The fighter will still require some U.S. components, such as communications and data links, to ensure interoperability with the U.S. military.
As negotiations progress in Tokyo and London, it remains unclear what role, if any, the Swedish and Italian governments will play in the new project after agreeing to collaborate on Tempest.
