The United States and Japan have unveiled $36bn worth of oil, gas, and critical minerals projects as the first phase of a broader $550bn investment agreement signed last year.

Axar.az, citing The Guardian, reports that the announcement was made by US President Donald Trump and Japanese Prime Minister Sanae Takaichi, who described the initiative as a major step toward strengthening economic security and bilateral ties.

The projects include a massive natural gas-fired power plant in Portsmouth, Ohio, expected to generate 9.2 gigawatts annually and operated by SB Energy, a subsidiary of SoftBank Group. Japan will also invest in a deepwater crude oil export facility off the Texas coast and a $600m synthetic industrial diamond manufacturing plant in Georgia. The diamond project aims to secure full domestic production of industrial diamond grit, a key material used in advanced manufacturing and semiconductor industries.

The deal comes amid ongoing geopolitical tensions with China, particularly over Taiwan and Beijing’s dominance in critical minerals and rare earth processing. Although Trump and Chinese President Xi Jinping reached a temporary easing of tensions last year, US officials continue to stress the need to reduce reliance on Chinese supply chains. Japan has also faced rare earth export restrictions from China in recent months.

In return for Japan’s large-scale investment commitments, Washington agreed to reduce tariffs on Japanese exports, including automobiles.