Japan plans to invest $36 billion in US oil, gas, and critical mineral projects. This is the first part of its $550 billion commitment under the trade agreement signed with President Donald Trump.
“Our MASSIVE Trade Deal with Japan has just launched!” Trump posted on social media Tuesday. “The scale of these projects is so large, and could not be done without one very special word, TARIFFS.”
Japanese Prime Minister Sanae Takaichi said the projects aim to build strong and reliable supply chains. She said the focus areas—critical minerals, energy, and artificial intelligence—are key to economic security.
“We believe this initiative fully supports our main goals: creating mutual benefits for Japan and the United States, protecting economic security, and driving economic growth,” she wrote.
Major $33 Billion Ohio Natural Gas Project
The largest investment is a natural gas power facility in Ohio. According to US Commerce Secretary Howard Lutnick, the plant is expected to generate 9.2 gigawatts of electricity. Trump called it “the largest in History.”
Japan is expected to invest $33 billion in the project. It will be led by SB Energy, a subsidiary of SoftBank Group Corp., according to a Trump administration official.
If the plant runs at full capacity, it would produce as much power as nine nuclear reactors. It could supply electricity to about 7.4 million homes on the largest US grid, operated by PJM Interconnection LLC.
Texas GulfLink Oil Export Terminal Investment
The second project is a deepwater crude oil export facility in the Gulf of Mexico. Japan plans to invest $2.1 billion in the Texas GulfLink export terminal. Sentinel Midstream will operate the facility.
When fully operational, the project could generate up to $30 billion a year in US crude exports, according to an administration official.
Trump’s first social media post caused some confusion, as he described the project as a liquefied natural gas facility. It is, in fact, a crude export terminal.
$600 Million Synthetic Diamond Manufacturing Plant
Japan will also invest in a synthetic industrial diamond manufacturing facility in Georgia. The project will receive $600 million in funding and involves Element Six, a subsidiary of De Beers.
Lutnick said these diamonds are critical for advanced industrial and technology production.
Japanese Chief Cabinet Secretary Minoru Kihara confirmed the projects during a press briefing Wednesday. He said both governments will continue working together to finalize details and move the projects forward quickly.
Trade Deal Background and Tariff Agreement
This announcement moves forward the trade and economic agreement Trump signed with Japan last year. It comes weeks before Takaichi is scheduled to meet Trump in Washington.
A joint panel first met in December to review potential projects. Trump makes the final selection based on recommendations from an investment committee and input from Japanese officials.
The $550 billion fund is designed to boost Japanese investment in key US industries. It is a central part of the tariff deal. Under the agreement, the US set tariffs at 15% on Japanese goods and reduced duties on automobiles, which are vital to Japan’s economy.
The meeting between Trump and Takaichi, expected March 19 in Washington, will likely focus on implementing the agreement.
Last week, Lutnick and Japanese Trade Minister Ryosei Akazawa met in Washington to finalize details of the first investments. Akazawa said the projects are not meant to be high-risk, high-return. Japan is looking for stable, secure returns.
“Japan is providing the capital. The infrastructure is being built in the United States. The proceeds are structured so Japan earns its return, and America gains strategic assets, expanded industrial capacity, and strengthened energy dominance,” Lutnick said.
The timing is important. Energy demand is rising sharply, especially from new data centers supporting the artificial intelligence boom. This has increased pressure to secure reliable power supplies.
During Trump’s visit to Japan last year, the two countries discussed potential projects ranging from $350 million to $100 billion. The framework included investments in energy, artificial intelligence, and critical minerals. Companies involved may include SoftBank, Westinghouse, and Toshiba Corp.
The Japan Bank for International Cooperation and Nippon Export and Investment Insurance are expected to help finance the projects. It remains unclear how much will be direct cash investment. Akazawa previously said only 1–2% of the $550 billion fund would be cash, with most funding coming from loans and loan guarantees.
After a project is selected, Japan has 45 business days to provide funding.
If Japan chooses not to fund a project, the US could reclaim certain revenues or reimpose tariffs under the agreement. This could lead to significantly higher duties on Japanese imports. Trump had threatened to raise tariffs to 25%, but lowered them to 15% after Japan agreed to increase US investment.
Trump has also expressed frustration about delays in a similar deal with South Korea, another major auto exporter. He has warned that tariffs could rise again, showing how closely investment promises are tied to tariff levels.
The announcement follows Takaichi’s major electoral victory earlier this month. Parliament is expected to formally re-elect her as prime minister. She has pledged to strengthen ties with the United States. Trump congratulated her and wished her success in her “Conservative, Peace Through Strength Agenda.”
William Chou, a senior fellow at the Hudson Institute, said the three projects reflect shared priorities in energy, artificial intelligence, and semiconductors. He noted they align well with Japan’s industrial strengths and experience in the US market.
“This announcement builds political momentum ahead of Prime Minister Takaichi’s trip to Washington next month and shows that Japan follows through on its commitments,” Chou said.
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