The Centre quarterly newsletter, March 2026 issue, is now available.
In this issue:
Main event…
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
▶ Japan to double science, tech spending to $380bn over 5 years
14 Mar, 2026
Photo Source: Tomoki Mera/Nikkei
Japan plans to boost government investment in science and technology to ¥60 trillion ($376 billion) over five years through 2030, focusing on AI, space, and nuclear fusion, under the new Science, Technology and Innovation Basic Plan. Combined public-private investment targets ¥180 trillion. The plan prioritizes 61 technologies across 17 strategic fields and will strengthen R&D tax incentives, university funding, and support for dual-use technologies with civilian and military applications, aiming to accelerate innovation and private-sector engagement in high-risk, cutting-edge fields.
Nikkei Asia:https://asia.nikkei.com/business/science/japan-to-double-science-tech-spending-to-380bn-over-5-years
▶ Japan, US to cooperate on handling supply disruptions of critical minerals
16 Mar, 2026
Photo Source: Tsukada Hajime/Nikkei
Japan and the U.S. have agreed to create a framework to manage supply disruptions of critical minerals, including rare earths, through a rapid-response group for information sharing and cooperation. The pact, announced by Japan’s Minister of Economy, Trade and Industry Ryosei Akazawa, also includes deeper collaboration on liquefied natural gas and nuclear power. The initiative, discussed at an Indo-Pacific energy security ministerial attended by 18 countries, underscores efforts to strengthen regional supply chain resilience and energy security—key priorities for advanced economies like the EU.
▶ Nuclear Fusion Reactor Completion Targeted for 2038; Developer Aiming for 100,000-Kilowatt Generation
16 Mar, 2026
Source: ITER Organization
National Institute for Quantum Science and Technology plans to begin constructing a prototype nuclear fusion reactor in the late 2020s, targeting completion by 2038 to accelerate commercialization of fusion energy. The reactor, comparable in scale to ITER in France, will test integrated power generation, tritium fuel production, and stable operations. Fusion offers a transformative energy solution—producing large-scale, carbon-free power without high-level radioactive waste. Backed by the government of Sanae Takaichi, the project highlights Japan’s strategic push to lead in next-generation energy, reinforcing energy security, decarbonization, and technological competitiveness—key priorities for advanced economies.
Yomiuri:https://japannews.yomiuri.co.jp/science-nature/science/20260316-316723/
▶ Japan OKs bill to boost economic security as PM targets sensitive areas
19 Mar, 2026
Photo Source: Mainichi
Japan’s Cabinet approved a revision to the economic security law to support private firms in critical technologies like satellites and seabed cables, encourage expansion into the Global South, protect key infrastructure including healthcare, and strengthen cyber defenses, with a new think tank to monitor advanced technologies.
Mainichi:https://mainichi.jp/english/articles/20260319/p2g/00m/0na/013000c
▶ Japan to help bolster rare earth, chip supply chains in Global South
20 Mar, 2026
Photo Source: Reuters
Japan plans to strengthen supply chains for chips, rare earths, and other critical goods by backing domestic companies expanding into developing countries. The cabinet approved a bill allowing JBIC to provide financial support and assume some risk. The move targets semiconductors, rare earths, shipbuilding, and 5G, aiming to secure critical materials and reduce reliance on unstable sources.
▶ Japan to support 'green' steelworks with up to $1.1bn in debt guarantees
20 Mar, 2026
Photo Source: Tomoki Mera/Nikkei
Japan will support JFE Steel in building a low-emissions electric arc furnace at its Kurashiki facility, guaranteeing up to 180 billion yen ($1.14 billion) in loans through the GX Acceleration Agency, part of the government’s push for green transformation. The 329.4 billion yen project, partly subsidized by 104.5 billion yen from METI, aims to cut CO₂ emissions by about one-third. The initiative marks the agency’s first debt guarantee since its 2024 launch and supports Japan’s decarbonization and green steel growth strategy.
▶ Japan, US unveil 3 new business projects worth $73 billion total
20 Mar, 2026
Photo Source: Kyodo
Japan and the United States unveiled a new set of joint energy and strategic projects worth $73 billion, part of Japan’s $550 billion commitment under last year’s trade deal. Key initiatives include building small modular nuclear reactors in Tennessee and Alabama, constructing natural gas facilities in Pennsylvania and Texas, and advancing cooperation on critical minerals and deep-sea resource development. The projects aim to ensure stable power supply, strengthen technological leadership, and diversify supply chains amid global competition, particularly with China.
Mainichi:https://mainichi.jp/english/articles/20260320/p2g/00m/0bu/016000c
▶ China's rare-earth magnet exports to Japan rise despite controls
21 Mar, 2026
Photo Source: Reuters
China’s rare-earth magnet exports to Japan rose 9.7% in early 2026, but supplies of heavy rare-earth elements like dysprosium have declined amid tighter export controls. While overall exports remain stable, stricter regulations and increased scrutiny are making procurement more difficult for Japanese firms. China appears to be maintaining shipments of widely used light rare earths while tightening control over more strategic materials, reinforcing its dominance in the sector.
▶ Japan to support Vietnam's green push with $565m in yen loans
21 Mar, 2026
Photo Source: Yuji Nitta/Nikkei
Japan and Vietnam agreed on 90 billion yen ($565 million) in development loans to support Vietnam’s green transformation and disaster preparedness, marking Japan’s first yen loan to Vietnam in two years. The largest loan, 50 billion yen, is tied to policy achievements. Japan remains Vietnam’s largest ODA provider with 3 trillion yen in total loans. Japanese firms like Idemitsu Kosan, JERA, and Weathernews explored business opportunities in Hanoi.
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▶ Hitachi, GE Vernova eye building small nuclear reactors in Southeast Asia
14 Mar, 2026
Photo Source: Nanami Sato /Nikkei
Hitachi and GE Vernova have agreed to develop next-generation small modular reactors (SMRs) in Southeast Asia, addressing rising electricity demand and supporting decarbonization goals.
Building on their BWRX-300 project in Canada, the collaboration includes supply chain development with Japanese manufacturers and coordination with local governments. SMRs’ compact design (~300 MW) enables faster, cost-effective deployment, highlighting scalable, low-carbon nuclear solutions relevant for energy security.
▶ European wind power giant to build Japan assembly plant by FY 2029
15 Mar, 2026
Photo Source: Hibiki Wind Energy Co.
Danish wind power company Vestas will build a nacelle assembly plant in Japan by fiscal 2029, supported by the Japanese government, to strengthen domestic offshore wind supply chains. The plant aims to restructure Japan’s wind turbine industry, reduce power costs, and help achieve a 65% domestic procurement ratio by 2040. Vestas plans a fully integrated nacelle manufacturing base by fiscal 2039. Memorandums were also signed with Denzai K.K. and Nippon Express to reinforce logistics and supply chains.
Mainichi:https://mainichi.jp/english/articles/20260315/p2g/00m/0bu/008000c
▶ ANA Holdings Eyes Launch of Small Drone Business; Model to Be Used to Inspect Condition of Structures After Disaster
16 Mar, 2026
Photo Source: ANA Holdings
ANA Holdings is developing fixed-wing drones to rapidly assess disaster damage in remote areas, offering faster and wider coverage than conventional methods.
The initiative also includes future drone-based logistics to deliver supplies during emergencies, highlighting scalable solutions for resilience, crisis response, and supply chain continuity.
Yomiuri:https://japannews.yomiuri.co.jp/business/companies/20260316-316712/
▶ Japan's NEC to pour $630m into undersea cable business
17 Mar, 2026
NEC plans to invest over ¥100 billion in its undersea cable business over five years to expand market share and address rising geopolitical risks. The investment includes new cable-laying vessels, R&D, and upgrades to its Kitakyushu plant, along with possible overseas storage facilities. Owning ships will allow NEC to respond faster to cable damage incidents. With global demand growing due to AI and data centers, NEC aims to raise its market share from 21% to 35% in a market currently dominated by NEC, SubCom, and Alcatel Submarine Networks.
Nikkei Asia:https://asia.nikkei.com/business/telecommunication/japan-s-nec-to-pour-630m-into-undersea-cable-business
▶ Japan's Daifuku eyes humanoid robots for logistics sector in 3 years
17 Mar, 2026
Photo Source: Daifuku
Daifuku plans to test AI-powered humanoid robots for logistics within three years, targeting complex tasks like picking and sorting that are difficult to automate. Leveraging clients such as TSMC and Intel, the initiative aims to address labor shortages and boost supply chain resilience. It also underscores growing global competition with firms like Tesla and Boston Dynamics in advanced industrial automation
▶ MHI Thermal Systems Expands Lineup of Air-to-Water Heat Pumps for the European Market
19 Mar, 2026
Photo Source: MHI
Mitsubishi Heavy Industries Thermal Systems (MHI Thermal Systems) has expanded its Hydrolution EZY air-to-water heat pump series for Europe with new 10kW and 14kW models using low-GWP R290 refrigerant. The monobloc units offer high-efficiency heating and cooling, low noise, and simplified installation, while maintaining water temperatures up to 75℃ even in extreme climates. Designed for flexibility in power supply and multiple-unit control, the series supports carbon neutrality by replacing fossil-fuel boilers with electricity-based systems, aligning with MHI Group’s goal of net-zero CO2 emissions by 2040. The new models combine cutting-edge energy efficiency, environmental performance, and sophisticated design, reinforcing Europe’s transition to sustainable, low-emission heating solutions.
MHI: https://www.mhi.com/news/26031901.html
▶ New Japanese satellite effort to use light for faster communication
23 Mar, 2026
Photo Source: Space Compass
Japanese companies, led by Space Compass (a joint venture of NTT and Sky Perfect JSAT), aim to launch a satellite communications service by 2030 using light instead of radio waves for high-speed, high-capacity data transmission. Swiss firm Swissto12 will provide geostationary satellites, starting as early as fiscal 2028. The system will relay data from low-orbit observation satellites to Earth in near real time, with plans to integrate NTT’s IOWN technology, AI, and advanced processing to improve speed and efficiency.
Published: March 2026
The EU-Japan Centre currently produces 5 newsletters :
Joint venture established in 1987 by the European Commission (DG GROW) and the Japanese Government (METI) for promoting all forms of industrial, trade and investment cooperation between the EU and Japan.
