Japan and U.S. Join Forces to Boost Synthetic Diamond Production

Japan and the U.S. are partnering in a major investment to build a synthetic diamond plant, critical for chip and precision manufacturing. This move comes as China restricts exports of artificial diamonds. The project is part of a $550-billion investment initiative aimed at reducing reliance on Chinese supply chains.

Japan and the United States are collaborating on a significant investment to establish a synthetic diamond plant, an essential component in chip and precision manufacturing industries. Sources reveal that this move could mark one of the first projects unveiled before the anticipated U.S. visit by Japanese Prime Minister Sanae Takaichi in March.

The initiative comes amidst China's recent export controls on artificial diamonds, highlighting the strategic importance of diversifying supply chains away from Chinese dominance. The project, involving Element Six—part of the De Beers Group—underscores efforts to solidify a U.S.-Japan supply chain for synthetic diamonds.

As part of a $550-billion package, the investment includes equity, loans, and other assurances facilitated by Japanese agencies like JBIC and NEXI. Concurrently, President Trump raises South Korean tariffs, signaling broader geopolitical trade shifts. With other large-scale industrial projects in the pipeline, the partnership aims to fortify economic ties while ensuring technological self-reliance.

(With inputs from agencies.)