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What Comes Next for U.S.-Japan Space Cooperation?

The U.S.-Japan space partnership remains a cornerstone in the Indo-Pacific, with recent high-level engagements reaffirming its strategic importance across civil, commercial, and national security domains. While U.S. civil space policy is shifting towards a lunar surface focus and commercial station development, Japan is rapidly accelerating its investment in space security, aiming to enhance capabilities in ISR, SDA, and missile warning. Experts emphasize the need for faster industrial base development, commercial integration, and reform of export controls to strengthen collective security and achieve shared objectives.

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What Comes Next for U.S.-Japan Space Cooperation?

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Japan is still one of the U.S.'s topmost space cooperative partners across civil, commercial, and national security sectors.

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There has been a renewed focus on the lunar surface in U.S. space policy, with less emphasis on the vicinity of the Moon and Gateway.

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Japan's proposed fiscal year 2026 budget for space security has topped over a trillion yen, or over $7 billion, which is about three times what it was a few years ago.

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Japan is spending the third-largest amount of money in the world on space.

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The data quality and speed from Japan's current PFI-based ISR procurement are not sufficient for targeting and kill-chain systems.

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Sean Wilson is the former director of international space policy on the National Space Council and a senior associate with the CSIS Aerospace Security Project.

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Prime Minister Takaichi met with President Trump in November.

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Director-General Kazeki of the National Space Policy Secretariat visited in April to discuss with U.S. interagency counterparts.

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Space remains a very strategic part of the U.S.-Japan alliance.

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On the U.S. side, there is an even heavier focus on the defense aspect of space.

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There was no big single announcement on Golden Dome during the Prime Minister's visit, despite prior discussion.

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Cooperation at the programmatic level is very strong, and coproduction pieces are expected to strengthen through fora like DICAS and PIPIR for items like missile interceptors.

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Director-General Kazeki's meetings were likely intended to gauge the U.S. interagency's direction for the partnership after a nearly two-year break since the last Comprehensive Dialogue on Space.

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The civil, commercial, and national security sectors are strategically weaving together in the U.S.-Japan space partnership.

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The U.S.-Japan space partnership is the cornerstone space partnership in the Pacific.

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Japan has all the ingredients to be a major global space power.

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Japan is considered the U.S.'s anchor in space in the Indo-Pacific due to its tremendous technical and industrial capability.

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Space is important to national security, economic productivity, and scientific exploration, a view affirmed by both the U.S. and Japan.

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Japan is pursuing new capabilities for its own sake and to be an effective partner with the U.S. and other international partners.

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The U.S. administration released a new executive order last December on ensuring American Space superiority and a new National Security Strategy.

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The U.S. National Security Strategy emphasizes burden sharing, burden shifting, investment, and expanding the commercial space economy.

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The shift to integrate commercial capabilities in the U.S. is accelerating, including encouraging new entrants and competition for rapid capability development.

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Japan has a very dynamic industrial base with both big and small companies.

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There is increased interest in integrating commercial capabilities in Japan, driven by the need for speed due to potential conflict in the region.

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NASA Administrator Jared Isaacman introduced a new mission architecture on "Ignition Day" to put the Artemis program on a more sustainable footing.

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The new Artemis architecture involves canceling out-year changes to the SLS to achieve a more repeatable and cheaper baseline configuration.

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Budgets for Commercial Lunar Payload Services 2.0 are expected to increase significantly.

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Japan likely has "heartburn" over the Gateway pause due to money already spent or planned to be spent, and the impact on flight opportunities for astronauts.

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There is not currently a Japanese CLPS program to leverage Japanese high-tech companies for lunar missions.

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U.S. procurement rules, such as majority U.S. ownership, can hinder Japanese companies from bidding on larger government contracts.

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NASA has changed its approach to acquiring the future space station to succeed the ISS twice in as many years.

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The previous plan was for the ISS to be retired around 2030, with a SpaceX-built deorbit vehicle, and one or more commercial stations succeeding it.

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NASA is now considering an ISS-anchored acquisition approach, where a new "core module" would dock to the ISS, and commercial stations would dock to that module for verification before becoming free flyers.

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This new approach implies a much longer ISS extension, potentially beyond 2032, requiring money and political buy-in from partners like Japan, Russia, Europeans, and Canadians.

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Acquiring a new ISS module could crowd out funding for commercial space stations, potentially making NASA compete with private industry.

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NASA is not expected to take 97.9% of the capacity of the first commercial space stations to orbit, requiring industry to generate demand from other sectors.

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Sectors like agriculture, pharmaceuticals, and new materials are increasingly interested in experimenting with low-Earth orbit access due to lower costs.

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The Space Force budget has almost doubled.

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Japan is transforming its defense enterprise and expanding its defense capabilities writ large.

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This summer, Japan will update three key security documents: its National Security Strategy, National Defense Strategy, and five-year defense buildup plan.

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The updated Japanese security documents will explicitly recognize the importance of space for defense.

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Japan will likely initiate efforts to mature its industrial base more rapidly, bringing together big and small companies and using the Space Strategy Fund more explicitly for procurement.

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Private finance in Tokyo is not spending a lot of money in the space sector, despite the size of its financial ecosystem.

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The Space Strategy Fund is leading private investors in Japan to consider investing in the space sector.

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Japan needs to develop a mindset for early-stage companies to become globally competitive.

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Japan's defense spending is increasing significantly and is expected to hit 2% of GDP soon, with the U.S. pushing for even higher.

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Japan's space defense budget will probably double or triple over the next five-year spending plan.

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Japan's Ministry of Defense (MOD) needs space ISR because it is developing counter-strike capabilities to target mobile targets in the region of potential adversaries.

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Space is a critical sensory input for building the data stack needed for targeting and kill-chain systems, requiring timely and revisited data.

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Japan's MOD announced in late December that it would procure space ISR services through a Private Finance Initiative (PFI).

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The Chinese ISR revisit rate over Japan is around once every 10 minutes, while Japan's initial PFI architecture provides data with a days-long process.

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Japan's initial ISR efforts will need to be supplemented through foreign partnerships for both satellites and data to achieve state-of-the-art capabilities more quickly.

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Japanese companies are noticeably absent from the top rankings for remote sensing companies globally.

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There is a growing recognition in Tokyo for the need for scalable, modular production of small satellites to innovate faster.

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The benefits of satellite capabilities on the ground, including incorporating new technologies like AI and quantum, are crucial.

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The U.S. has a history of outsourcing satellite imagery analysis, which is still controversial in Japan for briefing high-level officials.

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U.S. law now allows the use of commercial satellite imagery in National Intelligence Assessments.

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Japan is recognizing that it also needs to move towards integrating commercial satellite imagery and analysis.

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Licensed coproduction with an American partner is a way for Japan to rapidly develop capabilities, working side-by-side with engineers on established production lines.

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Japan needs to develop its own sovereign capabilities and build greater satellite production scale and proficiency.

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