The United States and Japan have unveiled the first set of projects under Tokyo's $550 billion investment pledge, agreed as part of a trade deal signed last year.
Media reports said that US President Donald Trump announced that $36 billion will go into three major infrastructure projects in energy and critical minerals, marking the first tranche of the broader commitment.
Under the July 22 trade agreement, Japan agreed to invest $550 billion in US industries through 2029 in exchange for a reduction in threatened US tariffs on Japanese imports from 25% to 15%.
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The Three Projects Selected
1) Natural Gas Power Plant — Ohio
The largest of the three projects is a $33 billion natural gas power plant in Portsmouth, Ohio, to be operated by SB Energy, a subsidiary of SoftBank Group. With a planned capacity of 9.2 gigawatts, the facility is expected to become the largest natural gas power plant in the world, according to the US Commerce Department.
US Commerce Secretary Howard Lutnick called it the “MASSIVE AMERICA FIRST TRADE WIN.”
According to Bloomberg, the plant's output would be equivalent to nine nuclear reactors or enough to power about 7.4 million homes.
President Trump wrote on Truth Social: “The scale of these projects are so large, and could not be done without one very special word, TARIFFS (sic).”
2) Deep-Water Oil Export Facility — Texas
Japan will fund a $2.1 billion deep-water oil export facility in Brazoria County, Texas, to be operated by Sentinel Midstream. The project is expected to significantly boost US energy exports, generating an estimated $20–30 billion annually in crude shipments, according to the US Commerce Department.
The facility is expected to boost US energy exports and strengthen Washington's push for “energy dominance."
3) Synthetic Diamond Plant — Georgia
A $600 million synthetic diamond manufacturing plant will be set up in Georgia and operated by Element Six. The facility will produce industrial diamonds, a key material used in semiconductors, automobiles and aerospace equipment, strengthening US capacity in critical minerals and reducing reliance on foreign supplies
Artificial diamonds are vital for semiconductor, automobile and aerospace industries.
Japan's Trade Minister Ryosei Akazawa said Japan currently depends heavily on one country for synthetic diamonds.
“If the project proceeds as planned, I believe dependence on that particular country would fall well below 50%,” Akazawa said.
What Trump Said:
Taking to Truth Social, Trump described the move as the launch of a “HISTORIC” trade partnership:
“Our MASSIVE Trade Deal with Japan has just launched!
Japan is now officially, and financially, moving forward with the FIRST set of Investments under its $550 BILLION Dollar Commitment to invest in the United States of America — part of our Historic Trade Deal to REVITALIZE the American Industrial Base, create HUNDREDS OF THOUSANDS of GREAT American Jobs, and strengthen our National and Economic Security like never before.
Today, I am pleased to announce three TREMENDOUS Projects in the Strategic Areas of Oil & Gas in the Great State of Texas, Power Generation in the Great State of Ohio, and Critical Minerals in the Great State of Georgia.
The scale of these projects are so large, and could not be done without one very special word, TARIFFS. The Gas Power Plant in Ohio (A State I won THREE TIMES!) will be the largest in History, the LNG Facility in the Gulf of America will drive Exports, and further our Country's Energy DOMINANCE, and our Critical Minerals Facility will end our FOOLISH dependance on Foreign Sources.
America is building again. America is producing again. And America is WINNING again.
This is a very exciting and HISTORIC time for the United States of America and Japan. Congratulations to all!"
Japan's Position
Prime Minister Sanae Takaichi said the agreement strengthens the Japan–US alliance and supports resilient supply chains in areas such as energy, AI and critical minerals.
“We believe this is fully aligned with the objectives of the initiative — namely, promoting mutual benefits between Japan and the United States, ensuring economic security, and fostering economic growth,” she wrote on X.
However, Akazawa noted that some financial and operational details are still being finalised.
Why It Matters — China Angle
The investments align with Washington's broader strategy to reduce reliance on China in key sectors such as Critical minerals, Semiconductor inputs and Energy security
By boosting domestic production capacity, the US aims to reduce Beijing's leverage in supply chains, especially amid rising tensions over Taiwan and trade.
Key Takeaways
1. Japan begins rolling out its $550 billion US investment pledge.
2. First tranche worth $36 billion covers energy and critical minerals.
3. The US reduces tariffs on Japanese imports to 15%.
4. Projects aim to boost US manufacturing and cut dependence on China.
Some details remain under discussion, according to Japan's trade ministry. The announcement comes ahead of Prime Minister Takaichi's planned White House visit next month, as both sides look to maintain momentum in the strategic economic partnership.
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