Japan Set to Invest ¥11.5 Trillion in U.S. Energy Sector, Including Next-Generation Small Nuclear Reactors

The Yomiuri Shimbun

16:25 JST, March 19, 2026

The Japanese and U.S. governments are planning to release a joint statement detailing Japanese investment of up to $73 billion (about ¥11.5 trillion) in the U.S. energy sector, The Yomiuri Shimbun has learned.

The statement, which may be announced when Prime Minister Sanae Takaichi meets U.S. President Donald Trump in Washington on Thursday, will focus on three key projects, including the construction of next-generation small modular reactors in the United States.

At a time when crude oil prices are soaring due to the situation involving Iran, the statement also will stipulate that consideration will be given to investing in projects intended to boost crude oil exports to Japan.

The statement is expected to be released as a “joint declaration” regarding strategic investments between Japan and the United States. A joint venture formed by Hitachi, Ltd. and U.S. company GE Vernova is scheduled to construct the small nuclear reactors in states including Tennessee. The Japanese side will invest up to $40 billion in this project, which will be the centerpiece of the partnership in this sector.

The draft of the joint statement describes these reactors, which can be constructed relatively cheaply and quickly, as stable power sources that will strengthen “Japan-U.S. leadership” in the global race to develop this technology.

In addition, the Japan side will invest up to $33 billion in the construction of natural-gas fired power plants in Pennsylvania and Texas. These plants are intended to help meet the rapidly growing demand for electricity by artificial intelligence data centers. The draft statement says Tokyo and Washington will strengthen cooperation to establish supply chains in strategically important fields for economic security.

These projects comprise a second round of deals under a $550 billion investment agreement reached by Japan and United States during talks over U.S. tariff measures. Japanese companies including Hitachi, Toshiba Corp. and Mitsubishi Electric Corp. will provide crucial parts, equipment and other expertise to these three projects. The government hopes expanding exports of these domestic companies will boost the nation’s economic growth.

The statement also likely will say that candidates considered for the third and additional rounds of projects will include the development of large nuclear reactors and oil fields in the United States with the idea of forming joint stockpiles and increasing production bound for Japan.

Given that securing stable energy supplies has become an increasingly pressing issue due to the ongoing conflict in the Middle East, these projects appear to be aimed at illustrating Japan’s proactive involvement in addressing the problem.