admin Nippon Steel has dramatically raised its investment pledge for U.S. Steel to $14 billion. This bold move comes as the company fights to gain final approval for the high-stakes merger ahead of a key U.S. national security review on May 21. The updated proposal includes a dedicated $4 billion investment to build a brand-new steel mill in the United States—marking a major shift in strategy.
Previously, Nippon Steel committed just $1.4 billion. But with mounting political pressure, the Japanese steelmaker revised its offer in August 2024 to $2.7 billion. Now, the total has surged to $14 billion—signaling its intent to secure a firm position in the U.S. market. The expanded pledge includes $11 billion earmarked for upgrading infrastructure across U.S. Steel’s operations through 2028.
In addition, the company plans a green field site investment starting at $1 billion, expected to grow to $3 billion over time. This significant expansion, not reported earlier, shows how serious Nippon Steel is about long-term U.S. operations. These investments are part of a last-ditch effort to push the merger forward.
The deal faces strong political resistance. Both President Joe Biden and former President Donald Trump have opposed foreign ownership of U.S. Steel. Still, Nippon Steel has committed to keeping U.S. Steel’s headquarters in Pennsylvania—a key political battleground. The company also promised job creation and stronger supply chain resilience, aligning with national interests.
Shares of U.S. Steel rose more than 3% after news of the investment broke. Yet approval remains uncertain. The Biden administration previously blocked the deal on national security grounds in January 2025. The Trump administration reopened the review after taking office in January, launching a 45-day process that ends this week.
Legal experts say the increased investment may tip the scales. “Expanded steel production is vital for national security,” said attorney Nick Klein. “This move could win the administration’s support.”
If the deal fails, Nippon Steel faces a $565 million breakup fee. With U.S. steel tariffs at 25%, domestic production is essential to accessing the growing market. Company executives, including Vice Chairman Takahiro Mori, have been in Washington lobbying officials directly.
A final decision could arrive within 15 days of the May 21 deadline. With high stakes, Nippon Steel’s bold move may decide the future of U.S. Steel.
Magazine 
