On Thursday, US President Trump and Japanese Prime Minister Koji Sanae held an official meeting at the White House to announce a series of cooperation agreements to strengthen their alliance. One of the significant agreements involves Japan investing $73 billion in the US energy sector. They also issued an action plan focused on critical minerals and rare earth supply chains to counter economic threats from China and enhance supply chain resilience.
According to a summary released by the White House after the meeting, the $73 billion investment is part of Japan’s commitment to invest $550 billion in the US. The specific investment commitments include the construction of small modular reactors by GE Vernova Hitachi in Tennessee and Alabama, with an expected investment of up to $40 billion. Additionally, around $33 billion will be used to build natural gas power plants in Pennsylvania and Texas.
The partnership between General Electric and Hitachi, known as GE Hitachi Nuclear Energy, aims to stabilize US electricity prices and provide power support for the growing data center demand.
Prior to this, the US and Japan had finalized the first round of investment projects where Japan invested $36 billion in the US for three essential infrastructures. These include a natural gas power plant with a capacity of 9.2GW in Ohio, construction of a deepwater crude oil export facility in the Gulf of Mexico, and establishing synthetic diamond manufacturing capacity in the US to reduce reliance on foreign supply chains.
In terms of economic security, the US and Japan officially launched the “Action Plan on Critical Minerals” to develop alternative solutions to reduce dependence on Chinese supply chains. The goal of the plan is to achieve concrete short-term results in ensuring resilience in bilateral supply chains.
Although the document did not explicitly name a specific country, it was clear that the aim was to address distortions caused by “widespread non-market policies and practices,” largely implying China according to Reuters.
The action plan emphasizes the urgency of correcting these market distortions as they make critical mineral supply chains vulnerable to various risks, including economic threats.
The statement further highlights that critical minerals are indispensable strategic assets in modern and innovative industrial economies, and the repair of fragile supply chain links is imperative. Establishing diverse, resilient, and market-based supply chains is crucial for ensuring overall economic and national security.
The initial phase of the plan will focus on specific minerals, coordinating trade policies, establishing price floor mechanisms, and exploring their integration into multilateral supply agreements involving other countries.
While specific minerals for implementing price floor mechanisms were not mentioned, the White House listed 13 projects that both governments intend to support, including rare earth recovery, nickel, gallium, lithium, and fluorite.
The two countries also signed a memorandum of cooperation on deep-sea mineral resource development to accelerate the research and development of relevant technologies. The cooperation will include the development of rare earth mud near Minamitorishima Island in Japan, believed to have resources to meet industrial demands for hundreds of years.
In the field of technology and space, both sides will deepen cooperation in artificial intelligence, quantum computing, and the Artemis lunar program, including Japan’s development of a manned lunar rover for astronauts to use in space.
Regarding defense capabilities, the US and Japan confirmed their commitment to enhancing collective deterrence. Japan pledged to increase its domestic production of the “Standard Missile-3 Block IIA” defense missile fourfold and discussed a joint production plan for the “Advanced Medium-Range Air-to-Air Missile” (AMRAAM) with the US.
Both sides reiterated their dedication to deploying advanced capabilities in Japan to achieve a robust defense posture. They will continue close coordination this year, building on the successful deployment of the THAAD missile system to Japan by 2025.
In terms of regional stability, the leaders of both countries reiterated the importance of maintaining peace and stability in the Taiwan Strait.
The statement emphasized that peace in the Taiwan Strait is essential for regional security and global prosperity, opposing any attempt to unilaterally change the status quo through force or coercion.
The US and Japan also reaffirmed their commitment to achieving complete denuclearization of North Korea and strengthening trilateral cooperation with South Korea.