The United States and Japan have unveiled the first three industrial projects financed under a $550 billion trade and investment deal signed last year, signaling the start of a major strategic partnership. Valued at a combined $36 billion, the projects include a massive natural gas power plant in Ohio, a deepwater crude oil export facility in Texas, and a synthetic industrial diamond factory in Georgia. These investments mark the first step in Japan’s commitment to act as the chief financier for critical US infrastructure and industrial projects.
The largest project is a $33 billion, 9.2-gigawatt natural gas power plant in Ohio, led by Japan’s SoftBank Group, which former President Donald Trump described as the “largest in history.” The Texas facility, worth $2.1 billion, will be operated by Sentinel Midstream, while the $600 million synthetic diamond factory in Georgia is led by Element Six, a subsidiary of De Beers. Japanese Prime Minister Sanae Takaichi highlighted that the projects will strengthen the US-Japan alliance and are expected to expand business opportunities for Japanese companies supplying equipment and materials.
The announcement came just hours before Takaichi’s swearing-in following her landslide election victory earlier this month. Under the trade deal, Japan pledged to invest, provide loans, or guarantee financing for $550 billion in US projects by 2029, coinciding with the end of Trump’s second term. In exchange, Trump agreed to reduce tariffs on Japanese exports from 25 percent to 15 percent, safeguarding Japan’s automotive and industrial sectors. The deal grants Trump ultimate authority to approve projects, with a 45-day window for Japan to fulfill funding obligations, backed by penalties for delays or refusals.
Major Japanese industrial groups, including Toshiba, Hitachi, and Mitsubishi Electric, are expected to supply components for the Ohio gas plant, while Nippon Steel, JFE Steel, and Mitsui OSK Lines could support the Texas oil terminal. Diamond tool manufacturers are anticipated to benefit from the Georgia facility. Japan’s Economy Minister Ryosei Akazawa described the arrangement as a “win-win relationship,” emphasizing mutual benefits for both countries. US Commerce Secretary Howard Lutnick added that the projects provide strategic assets, expanded industrial capacity, and strengthened energy dominance for the United States while ensuring returns for Japanese investors.
Negotiations over financing mechanisms and project selection have been ongoing, with state lender Japan Bank for International Cooperation and commercial banks backed by the export credit agency Nexi expected to play key roles. SoftBank founder Masayoshi Son has been central to discussions, with plans to leverage the $550 billion scheme to fund his AI and robotics initiative, Project Crystal Land, in Arizona and other US states, contingent on securing essential energy infrastructure.
