Washington: Announced at a high-level summit on Thursday, the agreement includes Japanese investments of up to $73 billion in U.S. energy projects, alongside a joint action plan aimed at strengthening supply chain resilience in key mineral resources.
A major highlight of the deal is the planned construction of small modular nuclear reactors by GE Vernova Hitachi, a joint venture between General Electric and Japan’s Hitachi, in Tennessee and Alabama. The projects are expected to cost up to $40 billion and form a cornerstone of future clean energy collaboration.
In addition, both governments confirmed plans to build natural gas generation facilities, with projects valued at up to $17 billion in Pennsylvania and $16 billion in Texas. According to official fact sheets, these developments are expected to stabilize electricity prices and support the growing power demands of data centers across the United States.
This latest round of announcements follows Japan’s earlier commitment of $550 billion in U.S. investments, part of broader negotiations to ease tariffs imposed by the U.S. administration last year.
Beyond energy, the two nations are taking a strategic step toward reducing reliance on China by launching an action plan focused on critical minerals and rare earths. The initiative aims to create alternative supply chains, including the introduction of price floor mechanisms for select minerals to ensure market stability.
While specific minerals have yet to be finalized, the plan includes support for 13 projects covering rare-earth recycling and key materials such as nickel, gallium, lithium, and fluorite. Both sides emphasized the importance of achieving “concrete, near-term results” to strengthen supply chain resilience.
The cooperation builds on a rare earths framework agreement signed in Tokyo in October 2025, amid rising concerns over Chinese export controls. As part of the new roadmap, the two countries also plan to establish a joint working group to accelerate deep-sea mineral resource development.
This collaboration will include shared research and data on seabed resources, with Japan contributing insights from projects such as its rare-earth muds initiative near Minamitorishima Island and its polymetallic nodules exploration efforts.