Japan will channel an initial 36 billion dollars into US energy and critical mineral projects, marking the first tranche of a broader 550 billion dollars investment framework agreed under its trade pact with US President Donald Trump.

Trump hailed the launch of what he called a “massive trade deal,” arguing that tariffs were instrumental in securing the commitment. Under the agreement, the US set a 15 percent levy on Japanese goods while easing duties on automobiles, a cornerstone of Japan’s export economy.

The centerpiece of the first wave is a large-scale natural gas power facility in Ohio. US Commerce Secretary Howard Lutnick said the plant is expected to generate 9.2 gigawatts of electricity. At full capacity, that would roughly equal the output of nine nuclear reactors or supply power to about 7.4 million homes across the PJM Interconnection grid, the largest in the US.

Japan is expected to commit 33 billion dollars to the project, led by SB Energy, a subsidiary of SoftBank Group Corp.. The scale reflects surging US power demand, particularly from data centers supporting artificial intelligence development.

A second project involves a deepwater crude export terminal in the Gulf of Mexico, although earlier remarks by Trump suggested the investment could target a liquefied natural gas facility off the Texas coast. Final specifications have not been fully clarified.

Japan will also back a synthetic industrial diamond manufacturing plant in Georgia. The facility, expected to receive about 600 million dollars, will involve Element Six, a unit of De Beers. Industrial diamonds are critical for advanced manufacturing and high technology production, making the project strategically significant beyond its modest size, bloomberg reported.

The investment vehicle is designed to blend strategic ambition with financial caution. Japanese Trade Minister Ryosei Akazawa has emphasized that projects under the 550 billion dollars mechanism are not intended to be high risk ventures. Instead, Tokyo is seeking stable, infrastructure style returns.

Much of the funding will likely come through loans and guarantees rather than direct equity injections. The government backed Japan Bank for International Cooperation and Nippon Export and Investment Insurance are expected to play central financing roles.

Previous statements from Akazawa suggested that only 1 to 2 percent of the overall mechanism would consist of direct cash investment.

Under the agreement, Japan has 45 business days to fund projects once selected. Final approval rests with the US president, based on recommendations from an investment committee and consultations with Japanese officials.