Japan, U.S. unveil 3 new business projects worth $73 billion total
Japan and the United States on Thursday unveiled a plan to build small modular nuclear reactors as one of three new business projects worth a total of $73 billion under Tokyo's $550 billion commitment made last year in exchange for tariff relief, Kyodo reports.
The second batch of joint projects, announced after Japanese Prime Minister Sanae Takaichi's meeting with U.S. President Donald Trump in Washington, also includes the construction of natural gas generation facilities in Pennsylvania and Texas.
Despite the unpredictability stemming from the Trump administration's approach to international relations, which led to the U.S. Supreme Court invalidating its sweeping tariffs last month, Japan has pledged to stick to the terms of a trade deal the two countries reached in July.
Under the agreement, Japan has committed $550 billion to U.S.-based projects in strategic industries through investments, loans and loan guarantees.
In mid-February, Japan and the United States announced the first three projects, including building a gas-fired generating facility in Ohio, the largest of its kind in U.S. history, to power artificial intelligence data centers.
On Thursday, they said the construction of small modular reactors by GE Vernova Inc. and Hitachi Ltd. in Tennessee and Alabama, projected to cost up to $40 billion, will serve as a "tremendous next-generation stable power source," leading to more stable electricity prices for Americans and an enhancement of the two allies' leadership in global technological competition.
Separately, Japan and the United States agreed to boost cooperation on critical minerals, which are essential for a broad array of economic activities and national security.
They also signed a memorandum of understanding to advance joint efforts to develop deep-sea mineral resources.
Recall that, Japanese Prime Minister Sanae Takaichi arrived in the United States on Wednesday for high-stakes talks with U.S. President Donald Trump in Washington.
