Ryosei Akazawa, Japan's Minister of Economy, Trade and Industry [EPA Yonhap News]

The battery industry is emerging as a strong candidate for Japan's $550 billion (approximately 822 trillion won) investment in the United States, a commitment made during last year's trade agreement, Kyodo News reported on the 16th.

While nuclear power plants, liquid crystal and display manufacturing, and copper refining facilities have been discussed as candidates for Japan's second major investment project in the U.S., batteries could also be included.

Battery systems are becoming increasingly important for stable power supply in data centers for generative artificial intelligence (AI).

Furthermore, as Chinese companies hold a significant share in the battery market, bilateral cooperation would enhance energy security, Kyodo News explained.

Last month, the U.S. and Japan announced their first major investment projects, including gas thermal power generation, oil export infrastructure maintenance, and synthetic diamond manufacturing. The synthetic diamond initiative, in particular, is known to be a choice made by both countries to reduce reliance on China.

In the case of reactors, discussions are reportedly underway for a plan where Japanese companies would supply equipment such as steam turbines and generators if U.S. company Westinghouse handles the construction.

Additionally, the Japanese government is exploring a plan to have Japan Display Inc. (JDI), a Japanese liquid crystal panel company, operate a U.S. liquid crystal and display factory, according to the Nikkei.

Kyodo News noted that "the two governments are hurrying to concretize 2 to 3 projects to be designated as the second phase of the project," but also pointed out that the projects currently being considered as candidates involve large investment scales, and the fundraising plans will likely take time.