Nippon Steel Ups U.S. Investment to $14B in Final Push for U.S. Steel Deal

Nippon Steel is pledging a massive $14 billion investment into U.S. Steel’s operations, including up to $4 billion for a new steel mill, in a last-ditch effort to gain Trump administration approval for its $14.9 billion acquisition of the iconic American firm. The plan includes $11 billion in infrastructure upgrades through 2028, with $1 billion set aside for a greenfield site, expected to grow to $3 billion—an expansion not previously disclosed.

The increased investment marks a significant jump from the initial $1.4 billion offer, aimed at addressing national security concerns that previously led to the Biden administration blocking the deal in January. The companies now face a May 21 deadline for the completion of a new 45-day national security review launched by the Trump administration, which began in January 2025. Trump would then have 15 days to decide, though delays are possible.

While it remains unclear whether the new investment will sway Trump, sources say the administration requested the increase. Legal experts argue that expanding U.S. steel production is vital for national security and may influence the final decision.

Nippon Steel’s commitment underscores its determination to secure the merger amid steep 25% U.S. steel tariffs and a potential $565 million breakup fee. The Japanese firm had already pledged to retain U.S. Steel’s headquarters in Pennsylvania, a key swing state, and increased its investment to $2.7 billion in August 2024 to bolster the bid.

Despite bipartisan opposition to foreign ownership of U.S. Steel, some Republican lawmakers credit Trump for reviving the deal. Nippon Steel Vice Chairman Takahiro Mori was recently in Washington for negotiations, signaling the firm’s continued push to finalize the deal and gain access to the booming U.S. steel market.