Japan is moving forward with a $36 billion investment in American oil, gas, and critical mineral projects as part of its trade pact with President Donald Trump’s administration. This outlay marks the first installment of the previously agreed $550 billion commitment and sets the stage for deepening economic engagement between the two countries.
A key component of this investment will fund a natural gas-fired power facility in Portsmouth, Ohio, which has been described by the U.S. administration as the largest of its kind nationwide.
The Ohio plant is projected to receive up to $33 billion and will be managed by SB Energy, a subsidiary of SoftBank Group, according to a U.S. Commerce Department briefing document. Japan’s Ministry of Economy, Trade and Industry confirmed SoftBank’s involvement, while officials noted that Toshiba and Hitachi may also join the project.
Additionally, Japan’s pledge includes financing for a crude oil export hub in the Gulf of Mexico. The Texas GulfLink terminal, operated by Sentinel Midstream, is set to draw around $2.1 billion in Japanese investment. The Commerce Department indicated that, once operational, the facility could support annual U.S. crude exports valued at up to $30 billion.
The funding also includes a synthetic industrial diamond manufacturing facility in Georgia, valued at approximately $600 million. The site aims to make the U.S. fully self-sufficient in supplying synthetic diamond grit, a critical input for advanced manufacturing and the semiconductor sector.
Japanese Prime Minister Sanae Takaichi highlighted that the projects are intended to strengthen essential supply chains, particularly in minerals, energy, and artificial intelligence. The investment initiative forms a central element of last year’s trade deal, in which the U.S. administration agreed to lower tariffs on a range of Japanese exports, notably automobiles, a vital industry for Japan.
The agreement’s rollout remains a priority, with further discussion anticipated at an upcoming meeting between President Trump and Prime Minister Takaichi in Washington scheduled for March 19.
