TOKYO, March 4 (Reuters) - Japan and the United States are working to include a nuclear power project in the second round of deals under Japan's $550-billion investment package, two people with knowledge of the matter told Reuters on Wednesday.
The nuclear power project, which the sources say will involve Westinghouse, is designed to strengthen both countries' energy supply chains as war in the Middle East renews concerns about energy security.
Several deals have been under discussion, to be potentially
announced when Japanese Prime Minister Sanae Takaichi meets U.S. President Donald Trump in Washington on March 19, said the sources, who declined to be identified as the matter was private.
Tokyo is scrambling to build up deals under the investment commitments it made as part of a U.S. tariff agreement. It has already announced three projects valued at $36 billion, including a natural gas power plant in Ohio.
A project to construct a copper smelting and refining facility is also being considered, the sources said.
Aiming to deepen the talks, Japan's Trade Minister Ryosei Akazawa plans to visit the U.S. from Thursday to meet U.S. Commerce Secretary Howard Lutnick, two separate sources close to the matter said on Wednesday.
Westinghouse was one of about 20 companies mentioned in a joint fact sheet the two governments issued in October as having expressed interest in projects to be financed by Tokyo.
The U.S. company, owned by Cameco and Brookfield, is looking at building pressurised water reactors and small modular reactors totalling up to $100 billion, according to the fact sheet.
Japanese firms such as Mitsubishi Heavy Industries, Toshiba and IHI could be potentially involved, it said.
Last year, the U.S. government inked a partnership worth at least $80 billion with Westinghouse to build nuclear reactors, underlining Trump's agenda to increase domestic energy output as the expansion of artificial intelligence data centres boosts demand.
The fact sheet also said Falcon Copper was considering building a $2 billion copper smelting and refining facility and is exploring involvement from Japanese suppliers and off-takers.
An official at Japan's industry ministry said the government did not know how the negotiations would turn out. Mitsubishi Heavy said nothing had been decided and that it would assess any equipment supply on a case-by-case basis. Toshiba declined to comment. IHI said it would review details if concrete talks emerged.
Westinghouse and Falcon Copper could not be reached for comment outside their business hours.
(Reporting by Tamiyuki Kihara and Makiko Yamazaki; Additional reporting by Jekaterina Golubkova and Nobuhiro Kubo; Editing by Kate Mayberry)
