Oddly enough the Japanese might be moving away from AIP
(...)
In any event, JMSDF believes that lithium-ion is the way forward and intends to 'trial' this new system and compare it to the previous AIP system for operational effectiveness.
Well, that's all true, but here's the dilemma between Power (kW) and Energy (kWh).
Batteries can provide a bulk of power at any moment (some MW), to propel the boat at max. speed. But their energy storage capacity is lower compared to the AIP. For instance, the S-80 submarine batteries are in the range of 10-12 MWh, while their AIP capacity would provide something in the range of 70-90 MWh. However AIP, as being implemented in submarines, can only provide limited power, typically in the range of 200-300 kW.
With LiFP batteries (that's the safest Li-ion technology for submarines) the energy can be doubled (grossly speaking). Let's take then 20-24 MW for the S-80 case, with similar dimensions to those of the Soryu. The Stirling engines do also take up a lot of space compared to the fuell cells (FC), and the oxygen requirements are also about double of that required for the fuel cells for the same energy, that is, Stirling efficiency in the use of O2 is about half of the FC. Therefore the Oryu may have reached (and this is just speculation) some 40-50 MWh by using both Lithium batteries and the space previously devoted to the Stirling engines and O2 storage filled with more Li-batteries. Still about half the energy it could get with an AIP.
The point is in the concept of operations. For Japan (and S_Korea as well) I guess the batteries make more sense. Not being far from their "own waters", the submarines may stay 1-2 weeks on station and still keep power and energy enough to quickly go back to their controlled waters and then surface or use the snorkel to replenish the batteries.
For Canada, and also for Australia, I guess, it might be better to have larger amounts of energy stored, that is longer permanence on station or capability to transit longer distances in-and-out of the "operations theatre", or even transit under the Arctic ice.
... but that is only my armchair opinion.