Japan and the US have unveiled the first list of potential projects under their US$550 billion (RM2.31 trillion) joint investment fund, offering a first glimpse into the initiatives that could be supported under the framework of their landmark trade agreement.
The announcement came during a signing ceremony in Tokyo on Tuesday, where US Commerce Secretary Howard Lutnick highlighted some of the highest-profile commitments, naming companies such as SoftBank Group, Westinghouse, and Toshiba Corp. Project sizes range from US$350 million to as much as US$100 billion. A fact sheet released by Japan’s trade ministry also listed additional Japanese firms interested in launching projects in sectors including energy, artificial intelligence (AI), and critical minerals.
Lutnick described the moment as “really, really exciting,” noting that these projects form the foundation for broader cooperation between the two countries. The initial announcements aim to flesh out a trade deal reached earlier this year, under which US tariffs on Japanese goods were lowered and capped in exchange for Japan committing to invest US$550 billion in US projects.
Key projects outlined include:
-
Westinghouse (Energy): Construction of AP1000 nuclear reactors and smaller modular reactors, potentially involving Mitsubishi Heavy Industries, Toshiba Group, and IHI, with an estimated scale of up to US$100 billion.
-
GE Vernova/Hitachi (Energy): Small modular reactor (SMR) construction, also valued up to US$100 billion.
-
Bechtel (Energy): Large-scale power and industrial infrastructure, including power plants, substations, and transmission systems, worth up to US$25 billion.
-
SoftBank Group (Energy): Development of large-scale power infrastructure, up to US$25 billion.
-
NuScale/ENTRA1 Energy: Power projects to support AI applications, including gas-thermal and nuclear generation.
-
Toshiba: Strengthening AI infrastructure through the supply of power modules, data center transformers, and other power-generation equipment.
-
Carbon Holdings (Critical Minerals): Construction of a greenfield ammonia and urea fertiliser facility, valued at up to US$3 billion.
The fund, still in its “launch phase,” will see preliminary project work vetted by a Japanese consultation committee and the US investment committee before final approval by the US president, Lutnick said. The goal is to start physical construction once projects are greenlit, a process expected to take several months.
Energy-related projects dominate the initial list in terms of scale, with both Westinghouse and GE Vernova/Hitachi SMR projects estimated at up to US$100 billion each. Other projects under consideration span semiconductors, pharmaceuticals, metals, shipbuilding, AI, and quantum computing, reflecting the fund’s dual focus on economic growth and national security.
The US retains final decision-making authority over which projects are funded, though Japan is expected to provide input. The investment fund is designed to complement the July trade agreement, which lowered US car duties from 27.5% to 15% and capped tariffs on other Japanese imports, while promoting collaboration on high-priority industries.
Lutnick emphasised that these companies were “fully vetted with the Japanese” and that the fund aims to build foundational infrastructure critical to both nations’ economic and security interests.
This marks a major step in operationalising the US$550 billion fund, with projects spanning multiple high-impact sectors, from clean energy and critical minerals to AI and quantum computing, reflecting a coordinated effort to strengthen the economic partnership between Japan and the United States.
