Japan Commits $36bn to US Oil, Gas and Mineral Projects
Japan has outlined plans to invest roughly $36 billion in United States oil, gas, and critical mineral projects. This project will be part of the first phase of a broader bilateral trade agreement with the Donald Trump administration. The initiative was announced jointly by Trump and Japanese Prime Minister Sanae Takaichi. It includes three major infrastructure projects that aim to strengthen economic cooperation and reduce reliance on overseas supply chains.
The White House confirmed that one of the flagship ventures will be a natural gas-fired power facility in Portsmouth, Ohio, which officials describe as the largest of its kind in US history. Additionally, Japan will finance a deep water crude oil export terminal along the Texas coastline. It also support the construction of a synthetic industrial diamond manufacturing plant in Georgia. These developments form part of Japan’s wider $550 billion investment pledge made under last year’s trade framework.
Trump emphasized the agreement’s strategic importance, and stated on social media that, “Our massive trade deal with Japan has just launched.” In exchange, Washington has agreed to ease tariffs on several Japanese exports, which also includes automobiles.
Investment by Japan will Boost US Energy Capacity
Most of the initial investment will fund the Portsmouth plant, which is expected to produce 9.2 gigawatts of electricity annually. The facility will operate under SB Energy, which is a subsidiary of the Japanese conglomerate SoftBank Group. Officials believe that the energy output will significantly boost domestic power capacity while supporting industrial expansion.
Meanwhile, the $600 million synthetic diamond manufacturing project aims to secure the domestic supply of diamond grit. Trump said that the initiative “will end our foolish dependence on foreign sources”, while highlighting concerns over supply chain vulnerabilities.
Rising US-Japan Economic Security Amid China Tensions
Although Takaichi did not directly refer to China in her remarks, she noted that the investments would strengthen Japanese and US economic security. Her statement comes as diplomatic tensions with the People’s Republic of China intensify over Taiwan’s security.
Beijing has recently limited rare earth exports to Japan, thereby it increases pressure on Tokyo’s manufacturing sector. China’s dominant role in the global critical minerals market remains a concern for US officials, especially after past trade disputes.
Commerce Secretary Howard Lutnick said, “Japan is providing the capital. The infrastructure is being built in the United States.” He added that the partnership would allow Japan to secure returns while enabling America to expand strategic industrial assets and enhance energy dominance.
Web Resources on US-Japan $36bn Project
1. NYTimes.com: Trump Hails Japan’s First Batch of U.S. Investments
2. JapanTimes.co.jp: Trump selects investment projects to be funded by Japan
3. CNBC.com: Trump says Japan to invest in energy, industrial projects
4. AcademicBlock.com: Trump Endorses Japan PM Sanae Takaichi Before Election