Japan to Invest $73 Billion in U.S. Energy Sector

The White House press office has announced that the United States and Japan have reached an agreement for Japanese investments of up to $73 billion in the American energy sector.

The agreement includes the implementation of three projects, including the construction of next-generation small modular reactors. This project will be carried out by a joint venture between Hitachi and GE Vernova in Tennessee and Alabama, with Tokyo allocating up to $40 billion for it.

Additionally, an investment of up to $33 billion is planned for the construction of gas power plants in Pennsylvania and Texas to meet the growing demand for electricity, including for data processing centers utilized by artificial intelligence sectors.

These investments mark the second phase of Japan's commitment to financing American projects, amounting to a total of $550 billion secured under a trade agreement between the two countries.

It is noteworthy that, by the end of July 2025, Japan and the U.S. had concluded a trade deal aimed at addressing tariff-related issues. This includes Japan's investment of $550 billion in the U.S., the opening of the Japanese market to American products, tariffs of 15% on imported goods from the U.S., and other provisions.

There were indications that if Tokyo did not sign the agreement, it would face a 25% mirror tariff from Washington.

In October 2025, U.S. President Donald Trump and Japanese Prime Minister Takaiti Sannae signed an agreement marking a new golden era in their relationship, along with a memorandum on strategic investments and a framework for securing supplies of rare earth metals through their extraction and processing.