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Stock Markets March 19, 2026

Japan and U.S. to Back $73 Billion in U.S. Energy Projects, Including $40 Billion for SMRs

Agreement channels up to $40 billion into small modular reactors via Hitachi-GE Vernova partnership and up to $33 billion into gas-fired capacity to meet AI-driven power needs

By Hana Yamamoto
Japan and U.S. to Back $73 Billion in U.S. Energy Projects, Including $40 Billion for SMRs

Japan and the United States will issue a joint statement outlining a planned strategic deployment of $73 billion into U.S. energy projects, with funds earmarked for small modular reactors and gas-fired generation. Japan’s Ministry of Economy, Trade and Industry reaffirmed nuclear power’s central role for decarbonization and energy security, and outlined domestic nuclear targets through 2040. Industry participants and contractors were detailed, and Jefferies will host a public discussion on the feasibility of Japan’s energy policy and corporate positioning in the nuclear value chain.

Key Points

  • Japan and the U.S. will announce a joint plan to direct $73 billion into energy projects in the United States, per Jefferies.
  • Up to $40 billion of the investment is allocated to small modular reactors via a Hitachi-GE Vernova joint venture; up to $33 billion is aimed at gas-fired power plants to handle electricity demand driven by artificial intelligence.
  • Japan’s METI emphasizes nuclear power for decarbonization and energy security, targeting a roughly 20% nuclear share by 2040 and 20-22% by 2030; current contribution has been in the 10-12% range since mid-2023.

Japan and the United States are preparing a joint statement to announce a coordinated strategic investment totaling $73 billion in energy-related projects located in the United States, according to Jefferies. Within that package, up to $40 billion is designated for small modular reactors - to be deployed through a Hitachi-GE Vernova joint venture - while as much as $33 billion is allocated for gas-fired power plants intended to help meet growing electricity demand associated with artificial intelligence applications.

Government posture and domestic targets

At the 4th Nuclear Supply Chain Symposium on March 9, Japan's Ministry of Economy, Trade and Industry stated that nuclear power will be indispensable to both decarbonization and Japan's energy security objectives. The ministry set out the dual priorities of restarting existing nuclear reactors and developing next-generation reactor technology. Those measures are intended to support a long-term goal of achieving roughly 20% contribution from nuclear power by 2040.

METI's published targets include an interim objective of raising nuclear contribution to 20-22% by 2030. Since mid-2023, the share of electricity generated by nuclear plants in Japan has remained in the 10-12% range, illustrating the gap between current output and stated targets.

Operational status and contractors

As of Tuesday, 10 nuclear power plants in Japan were operational and five were temporarily offline for regular maintenance, giving a total of 15 active facilities referenced in government reporting. The article lists contractors associated with those 15 plants: Mitsubishi Heavy Industries (TSE:7011) is contractor for 12 plants; Hitachi (TSE:6501) is contractor for one plant; Toshiba/IHI (TSE:7013) for one plant; and a combined Hitachi/Toshiba/IHI team for one plant.

Industry dialogue and expert review

Jefferies plans an online session with Hiroaki Nishi from the Japan Nuclear Safety Institute, scheduled for Tuesday from 21:00 to 22:00 JST. The session will examine the practical feasibility of Japan's energy policy trajectory through 2040 and will discuss how firms such as Mitsubishi Heavy Industries and Mitsubishi Electric (TSE:6503) fit into the nuclear supply chain and value chain more broadly.

Nishi is identified as a team leader at the Japan Nuclear Safety Institute, where he leads peer reviews for nuclear power plants across Japan. Prior to joining the institute, Nishi worked on electrical and instrumentation and control maintenance at nuclear power plants and at the head office of Kansai Electric Power Company (TSE:9503).

Note: This article presents reported plans and public statements as described by the referenced parties and media reporting. It does not introduce additional claims beyond those described above.

Risks

  • Uncertainty over whether Japan can reach its stated nuclear share targets by 2030 and 2040 - this impacts utilities, nuclear contractors, and energy markets.
  • Operational availability is constrained by maintenance cycles - five plants were temporarily suspended for regular maintenance as of Tuesday, which affects near-term nuclear output and power supply reliability.
  • The allocation toward gas-fired plants to meet AI-driven electricity demand highlights a potential tension between short-term capacity needs and long-term decarbonization goals, affecting gas generation and emissions-related market considerations.

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