Japan will invest $36 billion in U.S. oil, gas, and critical mineral projects as part of a larger $550 billion trade deal with President Donald Trump.
The Guardian reports that the first phase of the deal includes a major natural gas power plant in Ohio, a deepwater oil export facility in Texas, and a synthetic industrial diamond plant in Georgia. In return, the United States will reduce tariffs on Japanese exports, including automobiles.
Officials say the projects aim to strengthen economic security and reduce reliance on China.
The investments come as tensions rise between Japan and China over Taiwan and concerns grow about China’s control of rare earth minerals. Beijing has restricted some exports to Japan, exposing supply risks.
