The US and Japan announce a $40 billion nuclear and gas power initiative, strengthening energy security and technological leadership amid critical mineral supply chain cooperation.

WASHINGTON: The United States and Japan have unveiled a major $40 billion energy project to construct nuclear reactors in Tennessee and Alabama.

The announcement followed a meeting in Washington between US President Donald Trump and Japanese Prime Minister Sanae Takaichi.

A joint statement detailed the investment in so-called small modular reactors (SMRs) built by GE Vernova Hitachi.

It also announced a separate $33 billion investment in natural gas power generation facilities in Pennsylvania and Texas.

The projects are part of a broader investment pact, with Tokyo having agreed last year to invest $550 billion through 2029.

The first tranche of projects under this fund was announced in February, involving $36 billion across three infrastructure initiatives.

Thursday’s statement said the initiatives would “accelerate economic growth of both countries, thereby paving the way for a New Golden Age of the ever-growing Japan-US Alliance.”

It touted the SMRs as providing “a tremendous next-generation stable power source, stabilizing electricity prices for American people and strengthening the Japan-US leadership in global technological competition.”

Both nations also released an action plan on developing critical mineral supply chains.

This move addresses concerns about China’s dominant role in the sector.

The plan includes discussing coordinated trade policies and mechanisms, such as border-adjusted price floors.

 The Sun Malaysia