Toyota is set to invest $10 billion in its U.S. manufacturing operations, marking a major expansion of its production footprint and strengthening Japan’s deepening economic ties with the United States.

The announcement, confirmed by President Donald Trump during an address to U.S. military personnel in Japan, comes as part of Japan’s $550 billion strategic investment pledge targeting key sectors such as energy, artificial intelligence, and critical minerals. Japanese Prime Minister Sanae Takaichi reportedly outlined the plan as part of a broader initiative to reinforce bilateral trade and industrial cooperation.

According to a factsheet from Japan’s finance ministry, up to $400 billion of the total pledge will fund projects across energy and AI. Over $300 billion will be dedicated to nuclear and renewable energy initiatives designed to meet the surging power demands of AI-driven technologies and data infrastructure.

Major U.S. tech companies including Google, Amazon, Microsoft, and Meta, are expected to partner with energy providers to modernize and expand nuclear power capacity, seen as vital to supporting data center operations and AI research.

The remaining investments will focus on securing critical materials for electric vehicles and semiconductor supply chains. Up to $100 billion is projected for nuclear projects led by Westinghouse Electric, potentially involving Japanese industrial leaders Mitsubishi Heavy Industries, Toshiba Group, and IHI.

Japan’s top trade negotiator Ryosei Akazawa emphasized that the investment framework aims to build resilient, U.S.-based supply chains in strategic sectors while fostering economic growth in both countries.

While timelines remain fluid, Toyota’s $10 billion commitment underscores both its long, term confidence in the U.S. market and the growing alignment between Tokyo and Washington on industrial strategy and energy security.

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