TOKYO, Jan 27, 2026, 22:11 JST
- Sources say Japan and the United States are considering building a synthetic diamond plant in the U.S. as one of the first projects under Japan’s $550 billion investment plan.
- China controls the bulk of the synthetic diamond market and has started restricting exports of certain artificial diamonds.
- A Hitachi-associated power project is still in the early stages; Element Six confirmed no formal agreements exist yet.
Japan and the United States are eyeing a synthetic diamond plant in the U.S., focusing on this lab-grown material critical for chipmaking and precision tools, according to two insiders. The project ranks high within Japan’s $550 billion investment plan and could be among the first announced before Japanese Prime Minister Sanae Takaichi’s expected visit to the U.S. in March. (Reuters)
The timing highlights a stronger effort by both allies to secure supply chains for materials crucial to high-tech manufacturing, though most consumers never encounter them. China dominates synthetic diamond production and has started imposing export controls on certain artificial diamonds, ramping up the need for alternative sources. (Japantimes)
The talks fall under Japan’s wider push to secure projects linked to Tokyo’s tariff agreement with Washington, which cut U.S. tariffs on Japanese goods. The package from Japan will likely feature equity stakes, loans, and loan guarantees from state-backed entities like the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
Someone close to the talks revealed that Washington aims to accelerate domestic synthetic diamond production. “By bringing Japanese firms on board, Washington intends to create a U.S.–Japan supply chain independent of China,” the source explained.
The synthetic diamond plan includes Element Six, a division of De Beers Group, according to the source. De Beers is primarily known for natural diamonds, whereas Element Six specializes in synthetic diamonds for industrial applications.
Diamond ranks as one of the toughest materials out there, which makes it valuable in industrial settings. It’s essential for ultra-precise polishing of semiconductors and for cutting through tough metals and ceramics found in advanced gear, including certain quantum devices.
Artificial diamonds are “dual-use,” serving both civilian and military purposes. Reuters noted they’re employed in manufacturing munitions and radar parts.
Sources say a large-scale power-generation project with Japanese industrial giant Hitachi is expected to be among the initial batch of projects. A data centre initiative linked to SoftBank is also still in the running, though the exact value of these proposals hasn’t been disclosed yet. (Investing)
Japan’s trade ministry refused to comment on specific projects, noting only that it’s collaborating with the United States to build a project pipeline and that no decisions have been made. Element Six confirmed there are no formal agreements yet on any potential projects, while Hitachi acknowledged ongoing talks with both governments.
The list remains flexible. Since no agreements are signed and prices haven’t been made public, the initial “batch” might change as both governments consider what can be funded quickly and what to reveal before Takaichi’s trip—without binding either party to conditions that might later be tough to fulfill.
