Westinghouse, Hitachi Eye Japan’s $550 Billion U.S. Energy Investment Opportunities

• Japan’s investment secures US energy projects: The package includes equity, loans, and guarantees to support infrastructure vital for national security.

• Companies plan modular reactors and power infrastructure: Westinghouse targets $100 billion in reactor builds with Japanese partners.

• Profit-sharing model favors US long-term: Initial 50-50 split shifts to 90% US after Japan recovers investment, with oversight by a joint committee.

Discover Japan’s $550 billion US investment package details, including key companies and energy projects. Explore impacts on bilateral trade—read now for expert insights on economic security.

What is Japan’s $550 billion investment package in the US?

Japan’s $550 billion investment package in the US represents a major commitment under a September trade deal amid ongoing trade tensions. It encompasses equity investments, loans, and guarantees primarily from Japan’s state-owned institutions, the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI). This initiative aims to bolster economic security through joint projects in energy and infrastructure, with around 20 companies from both countries expressing interest in ventures worth about $400 billion.

How will Westinghouse, GE Vernova, and Hitachi contribute to modular reactor projects?

Westinghouse is set to develop pressurized water reactors and small modular reactors in initiatives totaling up to $100 billion, collaborating with Japanese suppliers such as Mitsubishi Heavy Industries, Toshiba, and IHI. A consortium involving GE Vernova and Hitachi is exploring the construction of small modular reactors to advance clean energy technologies. These efforts align with broader goals of enhancing energy independence and security for both nations. According to the US-Japan fact sheet, these projects will leverage combined expertise to deploy innovative reactor designs efficiently. SoftBank Group is eyeing a $25 billion investment in large-scale power infrastructure, while Carrier may provide thermal cooling systems and Panasonic energy storage solutions. Such collaborations could accelerate the adoption of advanced nuclear technologies, with industry estimates suggesting modular reactors could meet up to 20% of future US energy needs by 2040, based on reports from energy sector analyses.

Thanks to Japanese Minister of State for Economic & Fiscal Policy Akazawa, Ambassador to the United States Yamada and the entire Japanese delegation for their partnership in reaching this historic agreement.

With this deal, Japan will provide President Trump with $550 billion…

— Howard Lutnick, September 5, 2025

Japan’s finance ministry has expanded JBIC’s support for overseas expansions by Japanese firms, particularly in areas tied to economic security. Revised regulations now permit broader investments in developed countries like the US, facilitating these high-stakes projects. Commerce Secretary Howard Lutnick outlined a profit-sharing structure where initial returns are split equally between the US and Japan. After Japan recoups its full investment, the allocation shifts to 90% for the US and 10% for Japan. An investment committee will evaluate and recommend projects, ensuring alignment with national priorities.

Frequently Asked Questions

What companies are involved in Japan’s US investment package?

Around 20 firms from the US and Japan have shown interest, including SoftBank Group, Westinghouse, Hitachi, GE Vernova, Carrier, and Panasonic. These companies are focusing on energy projects valued at $400 billion, with specific plans for reactors, power infrastructure, and storage systems, as detailed in the joint fact sheet.

How does the profit-sharing work in the US-Japan investment deal?

The agreement starts with a 50-50 profit split between the US and Japan on funded projects. Once Japan recovers its investment, the US receives 90% of profits, and Japan gets 10%. This structure, confirmed by Commerce Secretary Howard Lutnick, incentivizes long-term collaboration while prioritizing US gains.

Key Takeaways

• Strategic energy focus: The package targets power infrastructure and pipelines, essential for US national security with minimal risk, as noted by Lutnick.
• Japanese financial backing: JBIC and NEXI provide loans and guarantees, with only 1-2% as direct equity based on historical project data.
• Alliance strengthening: Prime Minister Sanae Takaichi emphasizes elevating the Japan-US partnership, with first projects potentially identified by late 2025.

Conclusion

Japan’s $550 billion investment package in the US marks a pivotal step in deepening bilateral ties, channeling funds into critical energy sectors like modular reactors and power systems through collaborations with firms such as Westinghouse and Hitachi. This trade deal, amid global economic pressures, underscores commitments to shared security and innovation. As details unfold, stakeholders anticipate accelerated project implementations, fostering mutual economic growth and stability in the coming years—stay informed on these developments for insights into international investment trends.

A fact sheet issued by the U.S. and Japan on Tuesday revealed that around 20 companies from both countries have expressed interest in projects that are part of Japan’s $550 billion investment package. SoftBank Group, Westinghouse, and Hitachi are among the firms interested, which are worth around $400 billion.

The $550 billion investment package was part of a trade deal that Japan agreed to with the U.S. in September amid the heightened trade war. Tokyo announced that the investment package would comprise equity, loans, and loan guarantees from the state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI). 

Westinghouse, GE Vernova, and Hitachi plan to build modular reactors 

Japan’s finance ministry stated in September that JBIC will provide financial support for overseas expansions by Japanese firms focused on the country’s economic security. The ministry also confirmed that it has revised regulations on financial institutions, which allows it to expand the scope of its investment in developed countries.

According to the fact sheet, Westinghouse plans to build pressurized water reactors and small modular reactors in projects worth up to $100 billion. The firm’s initiative will involve Japanese suppliers like Mitsubishi Heavy Industries, Toshiba, and IHI.

The factsheet also revealed that a consortium, which includes GE Vernova and Hitachi, is considering the construction of small modular reactors. SoftBank is also considering investing in a $25 billion project to develop large-scale power infrastructure. Carrier also hinted that it could supply thermal cooling systems to power infrastructure. Panasonic is expected to build energy storage systems.

Commerce Secretary Howard Lutnick disclosed last month that Washington would initially split profits equally on projects funded through the investment package. He revealed that once Tokyo earns back its full investment, the U.S. will shift to receiving 90%, while Japan will take the remaining 10%. The U.S. official also acknowledged that an investment committee will oversee the investment and suggest which projects to fund.

Japan’s Prime Minister wants to strengthen the Japan-U.S. alliance

Tokyo’s Finance Minister, Satsuki Katayama, revealed on Tuesday that the country will disclose the detailed plan of its investment package in the U.S. Katayama also acknowledged that he had established a good relationship with Japan’s Prime Minister Sanae Takaichi during the meeting.

“I just finished a phone call with President Trump. I conveyed to him that strengthening the Japan-U.S. Alliance is the top priority for my administration’s foreign and security policy. We confirmed our shared commitment to further elevating the Alliance to new heights.”

–Sanae Takaichi, Prime Minister of Japan.

Lutnick mentioned on Monday that Japan’s investment package would focus on areas such as power and pipelines. He argued that those areas are fundamental to the U.S.’s national security and have virtually no risk.

He also confirmed in an interview with the Nikkei Business Daily that 10 to 12 Japanese companies involved in areas such as power supply and shipbuilding are already planning to explore investment opportunities in the U.S. He revealed that the first project is expected to be identified as early as the end of 2025. Lutnick also maintained that the 15% levies on Tokyo’s semiconductors and pharmaceuticals will remain.

Japan’s top trade negotiator, Ryosei Akazawa, said earlier this month that the country’s U.S. investment fund won’t affect currency markets. He acknowledged that Tokyo will operate with caution to make sure that the yen doesn’t depreciate, which might cause a surge in import prices for Japan.

Akazawa also believes that Washington doesn’t care about the breakdown of the investment package, saying that it’s up to Japan to decide on the breakdown as long as the funds are available as needed.

Japan’s trade negotiator previously argued that only 1-2% of the investment fund will be actual investment, with the rest coming from loans and loan guarantees. He acknowledged that he based his assessment on past projects supported by JBIC and NEXI.