US-Japan agree on three projects including second round investment in SMR worth 109 trillion won
The US and Japan have agreed to invest 73 billion USD in three projects, including the construction of next-generation small modular reactors (SMR).
On the 19th, the governments of the United States and Japan reached an agreement on three projects as part of Japanβs 'second round investment in the US', following the resolution of tariff negotiations. According to Japanese media, Nihon Keizai Shimbun, a total of 73 billion USD (approximately 109 trillion won) will be injected into the three initiatives, and a joint document outlining the main contents has been prepared. This agreement was timed with a summit meeting in Washington D.C. between U.S. President Donald Trump and Japanese Prime Minister Sanae Takaiichi, leading to broad agreements on outlined projects. Previously, the two governments had defined three initial projects worth 36 billion USD (approximately 54 trillion won) during which Japan promised to fund various US projects it deemed necessary, including industrial diamond manufacturing, U.S. crude export infrastructure construction, and gas power generation projects. This new second round project represents 6.5% of Japan's total promised investment of 550 billion USD (approximately 822 trillion won) into the US. According to a fact sheet released by the White House, the core of the second round investment project revolves around energy-related facilities. A joint venture between Japanβs Hitachi and the U.S. GE (General Electric) will build small modular reactors in Tennessee and Alabama, with an investment of 40 billion USD (approximately 60 trillion won). In addition, two other projects include the construction of natural gas power generation facilities to meet energy demands for AI data centers, with up to 33 billion USD allocated for Pennsylvania and Texas. Nihon Keizai Shimbun reports that these projects are in the final decision-making stage, with both governments confirming continued negotiations.