Arya News - Doosan, SK and HD Hyundai to benefit as three countries join forces to deploy next-generation nuclear reactors in overseas markets.
SEOUL – A new small modular reactor partnership between South Korea, the US and Japan is fueling hopes that Korean energy companies will capture a larger share of the global market for nuclear power.
Last week, the three countries signed a memorandum of cooperation to deploy SMR in third countries, with an initial focus on the Indo-Pacific region. Signed by the foreign ministers of the three countries on the sidelines of the NATO Summit in Turkey, the agreement is raising expectations of new opportunities for Korean companies, including Doosan Enerbility, SK Group and HD Hyundai Group.
The initiative seeks to combine US reactor technology with Korea’s manufacturing and construction capabilities and Japan’s expertise in precision materials and components.
Under the agreement, the three countries plan to identify markets interested in adopting SMRs, encourage energy companies to form consortia, build out supply chains, and jointly pursue projects in countries seeking reliable, low-carbon power sources.
Observers say India, Indonesia, the Philippines, Singapore and Vietnam are expected to be among the first markets considered under the initiative, as they explore SMR adoption.
The US is home to several of the most prominent SMR and advanced reactor developers, including NuScale Power, TerraPower, X-energy and GE Vernova Hitachi Nuclear Energy. Japan has established capabilities in nuclear materials, precision machinery and components, while Korean companies have extensive experience in manufacturing large nuclear equipment and executing complex power plant projects.
Korea’s main edge, therefore, could come less from developing the reactor technology itself and more from turning US innovations into commercially viable power plants, experts say.
Korean companies could supply heavy components such as reactor vessels and steam generators, alongside engineering, procurement and construction services. Korea’s shipbuilding sector also possesses fabrication and modular construction capabilities that can be adapted to serial reactor production.
Doosan eyes equipment demand
Doosan Enerbility, Korea’s largest nuclear equipment manufacturer, is widely viewed as a potential beneficiary of the expanded partnership.
The company has long been a partner with leading US developers, including TerraPower, NuScale Power and X-energy.
For NuScale, Doosan has produced long-lead materials and is preparing to manufacture key reactor-module components. Under a binding reservation agreement with X-energy, it has secured manufacturing capacity for major steel components for the first 16 Xe-100 reactors, including reactor pressure vessels and steam-generator pressure vessels.
Doosan is also providing manufacturability reviews and design support for three major components of TerraPower’s first Natrium reactor: the reactor guard vessel, reactor support structure and core barrel structure. The company plans to manufacture the components for the project.
Doosan has also expanded beyond the US market. In May, Britain’s Rolls-Royce SMR selected the company as a strategic supplier for key components, including work related to reactor pressure vessels for projects in the UK and the Czech Republic.
“The trilateral cooperation is positive news for the industry, because it could eventually lead to more SMR projects and equipment orders for projects in different countries,” a Doosan Enerbility official said.
The official cautioned, however, that the agreement remains at an early stage and has not yet resulted in specific contracts.
“We plan to continue working with our partners to expand further,” he said.
Doosan is investing 806.8 billion won ($542 million) to build dedicated SMR production facilities at its complex in Changwon, South Gyeongsang Province. Set for completion in 2028, the expansion is expected to increase its annual production capacity from the current 12 reactor modules to more than 20.
SK deepens TerraPower ties
SK Group has been expanding its SMR business through investment in and partnership with TerraPower, the US energy firm founded by Bill Gates in 2008.
SK Inc. and SK Innovation invested a combined $250 million in TerraPower in 2022, becoming the company’s second-largest shareholder.
TerraPower is developing the Natrium plant, a sodium-cooled fast reactor in Wyoming. The construction began in April after the project was approved by the US Nuclear Regulatory Commission, with completion targeted for 2030.
SK plans to expand its cooperation with TerraPower as the reactor moves toward commercialization. SK Innovation is also seeking to develop fourth-generation SMR using TerraPower’s technology, with commercial operation targeted for 2035.
The group ultimately aims to take the model into other Asian markets and combine SMRs with liquefied natural gas facilities and energy storage systems in integrated power projects.
HD Hyundai bets on maritime SMRs
HD Hyundai Group, meanwhile, is expanding its presence in the SMR industry as an equipment supplier to TerraPower and a developer of maritime nuclear applications.
In May, Hyundai Heavy Industries signed an agreement with TerraPower to serve as a primary manufacturer for critical reactor components, particularly the reactor enclosure system and cylindrical vessels for the Natrium project.
The Korean shipbuilder also seeks to apply its shipbuilding and modular manufacturing expertise to offshore nuclear power. It is developing a floating nuclear power plant and a nuclear-powered container ship using SMR technology, with commercialization targeted for 2030.
The group has unveiled a conceptual design for an SMR-powered container ship and has continued to research other vessel types, including large car carriers.
“We view the trilateral initiative positively because it could support and expand the SMR businesses we have been preparing,” an HD Hyundai official said. “We expect it to create broader opportunities in reactor-equipment manufacturing, land-based and maritime nuclear applications, and ultimately exports to other countries.”
Industry officials note that the partnership could open more opportunities for Korean firms to enter overseas projects by linking them with established US reactor developers and Japanese component suppliers. However, they caution that the memorandum only sets out a framework for cooperation and does not guarantee any actual orders or investment.
“The agreement could create new export opportunities for Korean companies as more countries consider next-generation nuclear power to meet rising electricity demand and decarbonization goals,” an industry official said.
“But regulatory differences, financing risks and uncertainty over when SMRs can become commercially viable remain key challenges.”