South Korea Targets Global SMR Market with US-Japan Partnership

A new strategic partnership in small modular reactor (SMR) technology between South Korea, the United States, and Japan is significantly boosting prospects for South Korean energy companies to secure a larger share of the expanding global nuclear power market.

Recently, the three nations formally signed a memorandum of cooperation aimed at deploying SMRs in third countries, with a strategic initial emphasis on the dynamic Indo-Pacific region. This pivotal agreement, inked by the foreign ministers during the NATO Summit in Turkey, is generating considerable anticipation for fresh opportunities across the nuclear sector, particularly benefiting South Korean industry leaders such as Doosan Enerbility, SK Group, and HD Hyundai Group.

This groundbreaking initiative strategically merges advanced US reactor technology with South Korea’s formidable manufacturing and construction capabilities, complemented by Japan’s specialized expertise in precision nuclear materials and components.

Through this comprehensive agreement, the three allied nations are set to actively identify global markets eager to adopt SMRs. They will encourage energy companies to establish robust consortia, develop resilient supply chains, and collaboratively pursue next-generation nuclear projects in nations seeking reliable, sustainable, and low-carbon energy solutions.

Industry observers predict that nations like India, Indonesia, the Philippines, Singapore, and Vietnam will likely be among the primary markets targeted by this initiative, given their active exploration of SMR adoption for their energy needs.

The United States stands as a global hub for leading SMR and advanced reactor developers, featuring innovators such as NuScale Power, TerraPower, X-energy, and GE Vernova Hitachi Nuclear Energy. Japan brings established strengths in critical nuclear materials, precision machinery, and specialized components. Meanwhile, South Korean companies possess extensive, proven experience in manufacturing large-scale nuclear equipment and expertly executing complex power plant infrastructure projects.

Consequently, experts suggest South Korea’s primary competitive advantage will likely stem less from pioneering new reactor technology and more from its unparalleled ability to transform advanced US innovations into highly successful, commercially viable nuclear power plants.

South Korean enterprises are well-positioned to supply crucial heavy components like reactor vessels and advanced steam generators, in addition to providing comprehensive engineering, procurement, and construction (EPC) services. Furthermore, South Korea’s robust shipbuilding sector offers unparalleled fabrication and modular construction expertise, perfectly adaptable for efficient, serial reactor production.

Doosan Enerbility, recognized as South Korea’s largest and most experienced nuclear equipment manufacturer, is widely regarded as a primary beneficiary poised for substantial growth from this expanded trilateral SMR partnership.

Doosan Enerbility has established long-standing strategic partnerships with leading US SMR developers, including industry innovators such as TerraPower, NuScale Power, and X-energy.

Specifically for NuScale, Doosan has already produced essential long-lead materials and is actively preparing for the specialized manufacturing of key reactor-module components. Moreover, through a binding reservation agreement with X-energy, the company has successfully secured dedicated manufacturing capacity for critical steel components destined for the inaugural 16 Xe-100 reactors, encompassing crucial reactor pressure vessels and steam-generator pressure vessels.

Furthermore, Doosan is actively contributing manufacturability reviews and critical design support for three primary components of TerraPower’s pioneering Natrium reactor: specifically, the reactor guard vessel, the reactor support structure, and the core barrel structure. The company is strategically positioned and plans to undertake the full-scale manufacturing of these vital components for the project.

Beyond its strong US market presence, Doosan has also significantly expanded its international footprint. In May, the United Kingdom’s Rolls-Royce SMR selected Doosan Enerbility as a strategic global supplier for key SMR components, specifically including work on reactor pressure vessels for upcoming projects across the UK and the Czech Republic.

“This trilateral cooperation represents exceptionally positive news for the entire SMR industry, as it holds the potential to significantly increase the number of global SMR projects and drive substantial equipment orders for developments across diverse international markets,” a Doosan Enerbility official commented.

The official prudently cautioned, however, that while highly promising, the agreement is still in its nascent stages and has not yet culminated in specific, tangible commercial contracts.

“We are committed to continuing our collaborative efforts with our strategic partners to foster further expansion and market penetration,” he affirmed.

Demonstrating its long-term commitment, Doosan Enerbility is significantly investing 806.8 billion won ($542 million USD) into constructing state-of-the-art, dedicated SMR production facilities at its sprawling industrial complex in Changwon, South Gyeongsang Province. Slated for completion by 2028, this strategic expansion is projected to dramatically boost its annual SMR production capacity from the current 12 reactor modules to an impressive more than 20 units.

SK Group has been strategically expanding its advanced SMR business portfolio through significant investment in and a robust partnership with TerraPower, the innovative US energy firm famously founded by Bill Gates in 2008.

In a major strategic move in 2022, SK Inc. and SK Innovation collectively invested a substantial $250 million into TerraPower, consequently establishing themselves as the company’s second-largest shareholder.

TerraPower is currently spearheading the development of the innovative Natrium plant, which features a cutting-edge sodium-cooled fast reactor located in Wyoming. Construction commenced in April, following crucial approval from the US Nuclear Regulatory Commission, with an ambitious completion target set for 2030.

SK Group is strategically planning to significantly broaden its cooperation with TerraPower as the Natrium reactor advances towards full commercialization. Furthermore, SK Innovation is actively pursuing the development of fourth-generation SMRs leveraging TerraPower’s proprietary technology, aiming for commercial operation by 2035.

Ultimately, SK Group aims to strategically introduce this advanced SMR model into key Asian markets, envisioning integrated power projects that combine SMRs with liquefied natural gas (LNG) facilities and sophisticated energy storage systems for comprehensive energy solutions.

HD Hyundai Group, concurrently, is strategically expanding its influential presence within the dynamic SMR industry, serving both as a crucial equipment supplier to TerraPower and as a pioneering developer of innovative maritime nuclear applications.

In May, Hyundai Heavy Industries notably cemented an agreement with TerraPower to function as a primary manufacturer for several critical reactor components. This specifically includes the complex reactor enclosure system and specialized cylindrical vessels essential for the cutting-edge Natrium project.

The prominent South Korean shipbuilder is also actively seeking to leverage its world-class shipbuilding and modular manufacturing expertise for innovative offshore nuclear power applications. HD Hyundai is currently developing both a floating nuclear power plant and an an advanced nuclear-powered container ship, integrating state-of-the-art SMR technology, with commercialization ambitiously targeted for 2030.

To date, the group has proudly unveiled a conceptual design for its pioneering SMR-powered container ship and has vigorously pursued research into various other advanced vessel types, including expansive large car carriers, demonstrating a broad vision for maritime nuclear power.

“We regard this pivotal trilateral initiative with immense positivity, as it promises to robustly support and significantly expand the burgeoning SMR businesses we have diligently been preparing,” an HD Hyundai official stated. “Our expectation is that it will generate extensive, broader opportunities across reactor-equipment manufacturing, both land-based and innovative maritime nuclear applications, and crucially, facilitate exports to numerous other countries globally.”

Industry analysts emphasize that this strategic partnership holds the potential to unlock considerably more international opportunities for South Korean firms, enabling their entry into overseas SMR projects by synergistically connecting them with established US reactor developers and sophisticated Japanese component suppliers. However, these experts also prudently caution that the current memorandum merely establishes a foundational framework for cooperation and does not, at this stage, guarantee any concrete orders or direct investment.

“This groundbreaking agreement is poised to generate significant new export opportunities for South Korean companies, particularly as a growing number of countries worldwide contemplate next-generation nuclear power solutions to address escalating electricity demand and achieve ambitious decarbonization objectives,” an industry official commented.

“Nevertheless, critical challenges persist, including complexities arising from regulatory differences, inherent financing risks, and the prevailing uncertainty regarding the precise timeline for SMRs to achieve widespread commercial viability,” the official concluded.

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