U.S. President Donald Trump met with Japanese Prime Minister Sanae Takaichi on Oct. 28, unveiling a sweeping joint initiative to deepen economic and technological collaboration between the two allies. Following their meeting at the Akasaka imperial palace, both leaders announced a 21-point cooperation plan spanning four major sectors: energy, artificial intelligence, AI infrastructure, and rare earth minerals.
According to Japan’s Yomiuri Shimbun, the agreement includes more than $550 billion in total Japanese investment in the United States, originally pledged under the Ishiba administration’s strategic investment memorandum signed on Sept. 4. Of this, over $390 billion will be directed toward energy and AI-related projects—many designed to strengthen U.S. supply chain resilience.
Energy represents the largest investment category, covering eight projects. Among them:
- Westinghouse Electric will lead the construction of AP1000 nuclear reactors and small modular reactors (SMRs), with a total value capped at $100 billion, and participation from Mitsubishi Heavy Industries, Toshiba, and IHI under consideration.
- GE Vernova–Hitachi, a U.S.–Japan nuclear alliance, will co-develop BWRX-300 small reactors worth another $100 billion.
- Bechtel, America’s largest engineering firm, will manage design and construction for large-scale energy infrastructure, including power plants and transmission systems, with an investment ceiling of $25 billion.
- Kiewit Corporation will provide engineering and construction services valued at up to $25 billion, with potential Japanese corporate participation.
- GE Vernova will also invest $25 billion to enhance grid stability and high-voltage direct current (HVDC) systems for nuclear facilities.
- SoftBank Group will oversee large-scale power infrastructure design, integration, and operations, capped at $25 billion.
- The carrier will supply cooling and air-conditioning systems for power infrastructure, with an investment limit of $20 billion.
- Kinder Morgan will contribute $7 billion to expand natural gas transmission networks, also with potential Japanese involvement.
AI power and infrastructure development
The second pillar focuses on AI energy supply, led by NuScale Power and Japan’s Entra1 Energy, which will provide nuclear and natural gas power solutions tailored for AI data centers.
The third pillar—AI infrastructure—encompasses seven projects aimed at enhancing America’s digital and energy backbone:
- Toshiba will supply power modules and transformers for data centers.
- Hitachi will strengthen HVDC transmission and data center networks.
- Mitsubishi Electric will provide power generation systems and backup facilities, investing up to $30 billion.
- Fujikura will supply fiber-optic cables for data infrastructure.
- TDK will deliver advanced electronic components and power modules for AI applications.
- Murata Manufacturing will develop high-grade capacitors, filters, and energy storage modules, with investments up to $15 billion.
- Panasonic will supply energy storage systems and other electronic components, also capped at $15 billion.
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Together, these initiatives aim to build a secure and diversified AI supply chain linking Japanese technology with U.S. industrial capacity.
Rare earths and strategic materials
The fourth sector targets rare earths and critical minerals, comprising five projects:
- Falcon Copper will build copper smelting and refining facilities in the U.S. West, capped at $2 billion.
- Carbon Holdings will construct ammonia and urea fertilizer plants worth $3 billion.
- Element Six Holdings will develop diamond abrasive production facilities valued at $500 million.
- Max Energy will invest $600 million to upgrade shipping channels in the southern U.S. for crude exports.
- Mitra Chem will build a lithium iron phosphate (LFP) battery materials plant, with a total investment of $350 million.
All five projects include potential participation by Japanese companies and are designed to reduce reliance on Chinese rare earth processing.
