August M
Plans to deepen industrial cooperation between Japan and the United States are taking shape as officials explore projects tied to advanced manufacturing. Among the options under discussion is a facility focused on a material that plays a critical role in modern technology.
Details of the initiative are emerging ahead of a possible high-level diplomatic visit later this year.
Strategic material
According to Reuters, a proposal to build a synthetic diamond plant in the United States is a leading candidate within Japan’s planned $550 billion investment package. The project could be among the first to be announced ahead of a potential visit by Japanese Prime Minister Sanae Takaichi to Washington as early as March.
Sources familiar with the matter told Reuters that the United States is keen to speed up domestic production of synthetic diamonds, which are widely used in semiconductor manufacturing and other high-precision industries.
“The United States wants to accelerate domestic production of synthetic diamonds,” one source said. “By involving Japanese companies, Washington hopes to build a U.S.–Japan supply chain that does not rely on China.”
Supply chain concerns
The interest comes as China dominates global production of artificial diamonds and has recently imposed export controls on some of the material. Those moves have highlighted the strategic importance of securing alternative supply chains.
Synthetic diamonds are among the hardest materials known and are essential for polishing semiconductors, machining advanced metals and ceramics, and managing heat in high-end electronic systems. They also have dual-use military applications, including in munitions and radar components.
According to Reuters, the proposed project involves Element Six, part of the De Beers Group. The company said there were currently no formal agreements in place regarding any potential development.
Investment framework
Japan’s $550 billion package, agreed as part of talks with Washington to lower tariffs on Japanese exports, would include equity investments, loans and guarantees provided by state-backed agencies such as the Japan Bank for International Cooperation and Nippon Export and Investment Insurance.
Other projects under consideration include a large-scale power generation scheme involving Hitachi, sources said. A major data centre project linked to SoftBank Group has also been cited by Reuters as a remaining contender.
Japan’s trade ministry declined to comment on specific projects, saying discussions with the United States were ongoing and no decisions had been finalised.
Wider trade backdrop
The talks come amid renewed trade tensions elsewhere. President Donald Trump has announced higher tariffs on South Korean goods, accusing Seoul of failing to fully implement a similar agreement reached last year.
U.S. authorities have not yet commented on the potential Japanese projects.
Sources: Reuters
