President Donald Trump announced the launch of Japan’s first major investment projects in the United States under a sweeping bilateral trade agreement, directing $36 billion into energy and critical minerals infrastructure across several states.
The investments targeting Texas, Ohio, and Georgia will support oil exports, liquefied natural gas (LNG), power generation, and industrial mineral production. The projects mark the first phase of Japan’s broader $550 billion commitment to invest in the United States.
“Our massive trade deal with Japan has just begun,” Trump wrote on Truth Social on May 17. “Japan is now officially and financially proceeding with its first investments under its $550 billion commitment to invest in the United States.”
Trump described the agreement as “a historic trade deal to revitalize America’s industrial base, create hundreds of thousands of great American jobs, and strengthen national and economic security more than ever.”
Commerce Secretary Howard Lutnick confirmed that Trump approved the first three projects under the agreement.
Among them is what officials describe as the largest natural gas-fired power plant ever planned in the United States. The 9.2-gigawatt facility will be built in Portsmouth, Ohio.
According to Bloomberg, the plant’s output would equal the power generated by nine nuclear reactors and supply electricity to approximately 7.4 million homes.
The Wall Street Journal reported the $33 billion project ranks among the largest power generation developments ever announced in the country.
A subsidiary of SoftBank Group, SB Energy, is expected to lead the project, Commerce Department officials told the Journal.
Trump said the facility “will be the largest in American history.”
The second project involves construction of a deepwater crude oil export terminal in the Gulf of Mexico.
Lutnick said the facility would export between $20 billion and $30 billion worth of American crude oil annually, helping secure refinery capacity and strengthen the United States’ position as a global energy supplier.
The Wall Street Journal reported that Japan will invest more than $2 billion in the Texas Gulf project, which will be led by Sentinel Midstream.
The third investment centers on an industrial synthetic diamond production facility in Georgia.
The approximately $600 million project will be led by Element Six and aims to establish domestic production of industrial-grade synthetic diamonds used in advanced manufacturing and technology sectors.
Lutnick said the investment will ensure 100 percent of U.S. demand for industrial synthetic diamonds essential to advanced industries is sourced domestically.
Under the memorandum of understanding governing the investments, profits will initially be split evenly between the United States and Japan until Japan recovers its investment. After that, the United States will receive 90 percent of profits, while Japan will receive 10 percent.
The announcement comes amid broader strategic efforts to expand U.S. power generation capacity in order to meet the rapidly growing energy demands of artificial intelligence systems and data centers.
It also aligns with initiatives to increase oil export capacity, strengthening the country’s position as a global energy leader. Additionally, the move reflects a push to reduce dependence on China for critical minerals and advanced industrial inputs, reinforcing supply chain security and domestic industrial resilience.
“America is being rebuilt, producing again, and winning again,” Trump said, calling it “a very exciting and historic time for both the U.S. and Japan.”
The investment announcement follows reports in Japanese media that Trump had expressed frustration with Japan in recent weeks. Japan’s Minister of Economy, Trade and Industry, Ryosei Akazawa, visited the United States from May 11 to 14.
Analysts note that the investments are concentrated in Texas, Ohio, and Georgia states Trump carried in the last election suggesting potential political implications ahead of the November midterm elections.
Observers also expect the deal to increase pressure on other U.S. allies, including South Korea, to announce similar large-scale investment commitments.
The projects represent the first tangible step under the broader $550 billion U.S.–Japan investment framework, signaling a deepening economic and strategic partnership between the two nations.
