The United States and Japan have announced expanded cooperation, including Japanese investment of up to $73 billion in U.S. energy projects.

Plans include building small modular nuclear reactors in Tennessee and Alabama by GE Vernova Hitachi, with an estimated cost of up to $40 billion.

The two sides also plan natural gas power projects in Pennsylvania worth up to $17 billion and in Texas worth up to $16 billion.

Officials said these projects aim to stabilise electricity prices and support growing demand from data centres.

Push To Reduce Reliance On China

The two countries also agreed on an action plan to develop alternatives to China for critical minerals and rare earths.

They aim to strengthen supply chains and reduce risks by working on pricing systems and trade policies.

The plan includes support for projects involving minerals such as lithium, nickel, gallium and rare-earth recycling.

Focus On Supply Chain Security

Both sides said they want to achieve quick and practical results to make supply chains more stable and secure.

The cooperation builds on earlier agreements, including a rare earths framework signed in 2025 as both countries faced Chinese export restrictions.

Deep-Sea Resource Development

The United States and Japan also agreed to work together on developing deep-sea mineral resources.

A new working group will share research and explore joint projects, including Japan’s rare-earth projects near Minamitorishima Island.

(with inputs from Reuters)