Japan's planned participation in a $40 billion US Small Modular Reactor (SMR) project remains stalled because the Japanese government is demanding legal guarantees that would exempt its financial institutions from liability in the event of a nuclear accident.
The project is part of Japan's $550 billion investment
commitment to the United States, an agreement linked to negotiations to reduce
US tariffs. The funds would be used to develop SMR reactors in the states of
Tennessee and Alabama.
According to available information, US officials have
verbally informed Japanese authorities that state-backed entities, such as the
Japan Bank for International Cooperation (JBIC), would not assume any
liability, stating that the facilities would be owned and operated by the US
government.
However, Tokyo maintains its position of requiring that
these guarantees be put in writing before authorizing the disbursement of funds
allocated to the project.