On Day of U.S.-Japan Agreement Signing, Japan's Hitachi Announces $1.3 Billion Investment

Investment in Core Power Grid Infrastructure
Strengthening Bilateral Trade Agreements and Economic Cooperation
Japanese Companies Continue to Align with U.S. Policy

Aerial view of Hitachi Energy's manufacturing facility in the South Boston area. Hitachi Energy website

On September 4 (local time), as President Donald Trump signed an executive order to implement the U.S.-Japan trade agreement, Japanese company Hitachi Energy announced a plan to invest $1 billion (approximately 1.39 trillion won) in the United States.

The White House stated in a press release that day, "Today, Hitachi Energy announced a $1 billion investment in America's core power grid infrastructure. Of this, $457 million will be allocated to a new large-scale transformer manufacturing facility in Virginia."

The White House projected that this would create thousands of jobs and help ensure energy supply in preparation for the era of artificial intelligence (AI). The White House added, "Hitachi cited the White House's 'AI Action Plan' as the catalyst for its investment decision," and evaluated that "President Trump's AI- and energy-focused policies attracted this investment."

U.S. Secretary of Energy Chris Wright praised the move, saying, "To win the AI race, achieve reindustrialization, and keep the lights on, America needs much more reliable energy. Fortunately, Hitachi has provided the answer."

It appears that the large-scale investment by Hitachi Energy, a wholly owned subsidiary of Hitachi-one of Japan's leading companies-reflects the momentum of strengthened U.S.-Japan trade agreements and economic cooperation. In the U.S.-Japan trade agreement announced in July, Japan pledged to increase its purchases of American agricultural products, automobiles, and aircraft, as well as to invest $550 billion in the United States. Investments by Japanese companies such as Hitachi are seen in this same context.

Since the launch of President Trump's second administration, Japanese companies have continued to align themselves with U.S. policy. In June, Nippon Steel acquired U.S. Steel, and during the process-despite opposition from the Trump administration-was required to accept various conditions, including the issuance of "golden shares" that grant veto rights over key management decisions. In addition, Nippon Steel pledged to invest $14 billion (approximately 19.14 trillion won) in the United States, with $2.4 billion to be allocated to facilities in the Mon Valley region of Pennsylvania.