Mini Reactor Cost Surge Threatens Nuclear’s Next Big Thing

  • Inflation, rising rates push small modular reactor cost higher
  • Nuclear industry looks at standardization to mitigate impacts

A nuclear power plant in Essenbach, Germany. 

Photographer: Lukas Barth/Getty Images
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High inflation and rising interest rates are driving up the cost of a new generation of miniature atomic reactors that the nuclear industry is relying on to lift sales and help meet climate targets.

Nuclear-company executives and regulators met this week at the International Atomic Energy Agency to negotiate potential manufacturing and technology standards, a key step the industry needs to take in order to make prices competitive with other emissions-free energy sources. There are currently more than 80 unique small modular reactor, or SMR, designs under development, resulting in sprawling supply chains and caps on scaling up production.