Japan committed up to $73 billion for U.S. energy infrastructure projects on Thursday, marking the second installment of a larger investment pledge aimed at strengthening bilateral ties and addressing surging electricity demand.

The announcement came during a White House meeting between Japanese Prime Minister Sanae Takaichi and U.S. President Donald Trump. The funds will support three major initiatives: up to $40 billion for small modular reactors developed by GE Vernova Hitachi, a joint venture between GE Vernova and Hitachi Ltd., in Tennessee and Alabama; up to $17 billion for natural gas-fired power plants in Pennsylvania; and up to $16 billion for similar facilities in Texas.

These projects are designed to stabilize electricity prices, power artificial intelligence data centers, and enhance energy security amid global tensions. A joint statement highlighted the small modular reactors as a "tremendous next-generation stable power source," paving the way for a strengthened Japan-U.S. alliance.

This $73 billion package follows a $36 billion first-round commitment announced last month, which included a natural gas plant in Ohio, a crude oil export facility on the Gulf Coast, and a synthetic diamond manufacturing site in Georgia. Combined, Japanese pledges now total $109 billion, representing about 20 percent of Tokyo's $550 billion investment promise secured last year under a U.S.-Japan trade deal. That agreement reduced threatened U.S. tariffs on Japanese goods from 25 percent to 15 percent.

The investments underscore Japan's strategy to diversify energy supplies amid concerns over Middle East instability, including potential disruptions in the Strait of Hormuz, while bolstering U.S. manufacturing and job creation. Japanese firms like Hitachi, Toshiba, and Mitsubishi Electric will supply key components and expertise.

Beyond energy, the summit produced an action plan to build supply chains for critical minerals and rare earths independent of China. This includes 13 projects on recycling, nickel, lithium, and others, plus a memorandum on deep-sea mineral development sharing data from Japan's efforts near Minamitorishima Island.

The moves align with broader U.S. goals of energy independence and economic resurgence, with the projects expected to generate significant returns primarily benefiting American interests. Negotiations on these initiatives remain in advanced stages, with final decisions pending.