Nippon Steel has outlined plans to invest $14 billion [1] in U.S. Steel’s operations, including up to $4 billion for a new steel mill, as part of its ongoing bid to secure approval for a merger with the iconic American steelmaker. The Japanese company’s latest investment pledge comes ahead of a crucial national security review deadline, with the Trump administration expected to weigh the deal in the coming weeks.
According to details in a newly obtained document, Nippon Steel will channel $11 billion into U.S. Steel’s infrastructure through 2028. This includes an initial $1 billion investment in a green field site, which is expected to expand to $4 billion in the following years. The increased commitment follows earlier pledges of $1.4 billion, later raised to $2.7 billion in August 2024, as part of efforts to bolster U.S. Steel’s position while maintaining its headquarters in Pennsylvania.
The merger, which faces scrutiny from both President Donald Trump and former President Joe Biden, was previously blocked by the Biden administration on national security grounds in January. With Trump’s administration now reviewing the proposed tie-up, Nippon Steel is seeking to assure policymakers that the deal will boost domestic steel production and strengthen national security interests.
“Increased investment to expand steel production in the United States is critical to our national security. I think the Trump administration recognizes this and will approve the deal,” said Nick Klein, a lawyer from DLA Piper. However, it remains unclear if the additional billions pledged will be enough to sway decision-makers, as Trump has floated alternative structures for the partnership, including a potential minority stake arrangement.
Despite the uncertainty, Nippon Steel’s latest offer demonstrates its commitment to securing approval. The company faces a $565 million breakup fee if the deal fails, alongside U.S. steel tariffs of 25% that complicate access to American steel markets. Meanwhile, U.S. Steel’s stock reacted positively to the news, closing up more than 3% after the Reuters report.
Lawmakers aligned with Trump’s administration have lauded the deal, attributing the increased investment to the President’s efforts to reinvigorate American steel production. “President Trump has not only brought life back into this partnership by giving it a second chance, but he also made it great,” said Pennsylvania state senator Kim Ward.
Nippon Steel Vice Chairman Takahiro Mori was in Washington last week, engaging with U.S. officials in a bid to secure approval for the merger. As the May 21 deadline for the national security review approaches, industry watchers remain focused on whether Trump’s administration will ultimately greenlight the transaction or push for further revisions.
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[1] Exclusive: Nippon Steel to invest $4 billion for new US Steel mill in $14 bln package, document says https://www.reuters.com/business/nippon-steel-invest-14-billion-us-steel-including-4-billion-new-mill-document-2025-05-19/