Nippon Steel announced on May 30 its decision to move forward with converting domestic blast furnaces to electric arc furnaces by March 2030.

The investment plan totals 868.7 billion yen or around 6 billion dollars.

The Japanese company expects annual production capacity at its steel mills in Hyogo, Yamaguchi, and Fukuoka prefectures to be 2.9 million tons.

Nippon Steel’s electrifying plan aims to achieve carbon neutrality and was selected as a recipient of government support based on the Green Transformation Promotion Act.

Through the act, the government will provide a maximum of 251.4 billion yen or around 1.75 billion dollars.

Nippon Steel has been in the spotlight since its attempt to buy out US Steel, which was blocked by outgoing US President Joe Biden and later by his successor Donald Trump.

However, at a rally in Pennsylvania on May 30, President Trump called Nippon Steel a “great partner” with its plan to invest 14 billion dollars into US Steel.

Trump has yet to finalize the deal with very little detail made public.

The president has additionally announced that he is increasing tariffs on imported steel from 25% to 50%.