Australia wants a new Japanese propulsion system for its next generation of submarines, government officials with direct knowledge of the matter said, bolstering Tokyo's position as the likely builder of the multibillion-dollar fleet.
Australia was reported in September to be leaning toward buying 12 submarines based on Soryu-class vessels built by Mitsubishi Heavy Industries and Kawasaki Heavy Industries. The new submarines will replace six aging Collins-class boats.
In talks since then, Canberra has said it wants a lithium-ion battery propulsion system for the submarines, two Japanese officials and one Australian official said.