In talks between Prime Minister Sanae Takayi and President Donald Trump, the U.S. revealed that 20 companies were interested in key projects such as critical minerals and AI. Tokyo may have agreed to invest $550 billion in the U.S. as part of an agreement on tariffs.

The following issues are on the agenda.

RARE EARTHS

Trump and Takaichi have signed a framework to secure the supply of critical minerals and rare earths.

This deal comes after China tightened its export controls for rare earths last October. Washington responded by threatening to impose 100% tariffs on Chinese products. Rare earths can be found in everything from fighter jets to smartphones.

Five companies, including Falcon Copper and Carbon Holdings, are interested in building facilities related to copper smelting and refining, ammonia and urea fertilizer and lithium-iron-phosphate production worth $6.45 billion, according to a fact sheet issued by U.S. and Japan.

SHIPBUILDING

As part of the $550 Billion investment agreement, Japan and the U.S. have agreed that Tokyo will help expand U.S. Shipbuilding Capacity. A joint working group is tasked with determining the details of the deal, which includes collaboration between companies on both sides in order to increase competitiveness and standardise components and ship designs.

Power Infrastructure and Energy

Westinghouse, a nuclear equipment supplier, is looking to build reactors, including smaller modular ones, worth up $100 billion. It's also considering the involvement of Japanese suppliers, such as Mitsubishi Heavy Industries Toshiba and IHI.

Mitsubishi Electric, a Japanese company, was eager to be involved in the equipment and power generation of data centres valued at up to $30 billion.

SoftBank Group had an interest in large-scale infrastructure for power worth $25 billion. Panasonic was looking to strengthen energy storage systems in the U.S. and electronic component supply chain worth up $15 billion.

PICKUP TRUCKS

Sources with knowledge on the subject have confirmed that Japan is planning to buy more Ford F-150 pick-up trucks.

In August, Trump stated that Japan is ready to buy "the beautiful Ford 150." On Tuesday, a Ford 150 was parked in front of the Akasaka Palace as Takaichi met him.

The sources claimed that the F-150s were too wide and fuel-hungry to be used by most Japanese drivers as snowplows.

SOYBEANS

Tokyo is preparing to increase imports of U.S. soya beans, which will help compensate for the losses that American farmers suffered after China cut purchases.

Japan buys 70% of its soybeans in the U.S., and could have to reduce Brazilian imports to allow for more U.S. supply.

Last month, U.S. soya exports to China dropped to zero for the first time since nearly seven years.

TOYOTA CARS

Trump claimed that Toyota Motors would build auto plants in the U.S. "all over", at a cost of more than $10 billion.

NHK, the public broadcaster, reported that Toyota could announce plans to import U.S. made vehicles into Japan when Trump visits.

NATURAL GAS

Sources have confirmed that Japan is willing to increase U.S. LNG imports. However, this will not be from the $44 billion Alaska LNG Pipeline proposed by Trump.

Scott Bessent of the U.S. Treasury Department, who was traveling with Trump, urged Tokyo, in a letter, to stop buying Russian LNG. This still accounts for about 9% (or 9 billion yen) of Japan's fuel imported, mainly from Sakhalin-2, an oil and gas development.

DEFENSE SPENDING

Takaichi stated that Japan is committed to strengthening its defence capabilities after last week's pledge to accelerate the biggest defence buildup in the country since World War Two.

Japan is already home to the largest concentrations of U.S. military forces in the world, including an aircraft carriers, a Marine Expeditionary Unit and dozens fighter jets. (Reporting and editing by Lincoln Feast, Bernadette B. Baum and Lincoln Feast; Reporting by John Geddie, Anton Bridge and Tim Kelly)

(source: Reuters)