US, Japan Unveil $36B Energy Projects to Counter China

The US and Japan announce $36B in joint oil, gas and critical minerals projects. Trump says deals "end our foolish dependence on foreign sources" as part of a strategic pivot away from China.

The United States and Japan have unveiled a $36 billion package of joint investments in oil, natural gas, and critical minerals infrastructure, marking the first tranche of Japan's $550 billion commitment under a bilateral trade agreement struck last year. President Donald Trump announced the three "tremendous projects" on social media Tuesday, declaring they would "end our foolish dependence on foreign sources" and reinforce American energy dominance.

The largest project is a $33 billion natural gas-fired power plant in Portsmouth, Ohio, which Commerce Secretary Howard Lutnick described as the largest such facility in US history with a 9.2-gigawatt capacity . Operated by SB Energy, a SoftBank subsidiary, the plant will power growing electricity demand from AI data centers. A $2.1 billion deepwater crude export facility, Texas GulfLink, will be developed off the Texas coast, capable of generating $20–30 billion annually in US crude exports. A $600 million synthetic industrial diamond manufacturing plant in Georgia, operated by De Beers subsidiary Element Six, aims to eliminate US reliance on Chinese diamond grit essential for semiconductors and advanced manufacturing.

Japanese Prime Minister Sanae Takaichi said the projects would build resilient supply chains in areas crucial for economic security, including energy, critical minerals, and artificial intelligence. Trump credited his tariff policy for enabling the deals, writing: "The scale of these projects are so large, and could not be done without one very special word, TARIFFS.” The announcement follows a July 2025 trade deal that reduced US tariffs on Japanese imports to 15 percent in exchange for the massive investment pledge.

The initiative directly challenges China's dominance in critical minerals and rare earth processing. Japanese firms including Hitachi, Toshiba, Mitsui O.S.K. Lines, and Nippon Steel have expressed interest as suppliers. The projects are expected to be formally launched during Takaichi's March 19 visit to Washington.