Small Modular Reactors: Global Progress, Strategic Partnerships, and Future Challenges

The global energy landscape is shifting. Countries and corporations are focusing on decarbonization, energy security, and technological innovation. Small modular reactors (SMRs) are at the center of this shift. These advanced nuclear reactors could redefine how the world generates electricity.

Recent developments, especially in the United States, highlight this momentum. Holtec International is pushing forward with its "Mission 2030" to deploy SMR-300 reactors at the Palisades site in Michigan by 2030. This effort is backed by Hyundai Engineering & Construction and a $1.52 billion U.S. federal loan guarantee. Globally, the United Kingdom is running an SMR competition, while Asia is rapidly expanding its nuclear footprint. However, economic constraints, regulatory complexities, and unresolved waste management issues remain significant barriers.

Holtec’s SMR-300 Project at Palisades: A Key U.S. Initiative

Strategic Partnerships and Industrial Collaboration

Holtec International’s SMR-300 project at Palisades is a major step in revitalizing U.S. nuclear power. The company is working with Hyundai Engineering & Construction to develop a 10-gigawatt SMR fleet across North America. The first two units will be at Palisades. Hyundai’s expertise in large-scale nuclear projects, such as the Barakah Nuclear Energy Plant in the UAE, strengthens the project’s viability. Mitsubishi Electric is also involved in providing advanced reactor control systems.

Beyond SMRs, Holtec is restarting the 800-megawatt Palisades plant, which shut down in 2022. A $1.52 billion federal loan will help bring the plant back online by August 2025. This marks the first time a shuttered nuclear facility in the U.S. is being revived. Holtec’s approach—revitalizing existing infrastructure while deploying new SMRs—positions the company as a leader in nuclear energy.

Site Preparation and Regulatory Challenges

Holtec has already spent over $50 million on-site preparations. This includes environmental assessments, soil borings, and groundwater monitoring. The SMR-300 design features passive safety systems that rely on gravity for cooling, reducing dependence on external power.

However, the project faces regulatory hurdles. The Nuclear Regulatory Commission (NRC) has raised concerns about Palisades’ steam generator system, where corrosion cracking has been found. Holtec plans to use a repair method called “sleeving” but needs NRC approval. If successful, this could set a precedent for future SMR projects in the U.S.

Global SMR Developments

Europe’s Policy Shifts and Competitive Landscape

The United Kingdom’s Great British Nuclear (GBN) initiative is evaluating SMR designs from Holtec, Rolls-Royce, and Westinghouse. The goal is to deploy the first SMR by 2029. However, funding uncertainty threatens delays. France, Romania, and Poland are also advancing SMR projects, while Germany is revisiting nuclear power through ventures like Proxima Fusion.

Asia’s Rapid Expansion and Technological Leadership

Asia remains the global leader in nuclear energy expansion. China’s high-temperature gas-cooled reactor, HTR-PM, began commercial operations in 2023. South Korea reversed its nuclear phaseout policy and is investing in SMRs. India is accelerating its nuclear program to meet growing energy demands.

Emerging markets like Vietnam and Indonesia are also entering the nuclear sector. Vietnam has approved plans for nuclear plants by 2030, and Indonesia is partnering with the U.S. on SMR adoption. These nations view nuclear energy as critical in balancing economic growth with climate goals.

Technical and Safety Innovations in SMR Design

Passive Safety Systems and Modular Construction

Holtec’s SMR-300 design prioritizes passive safety. It uses gravity-driven cooling, reducing the risk of catastrophic failure. This approach aims to address safety concerns that have plagued the nuclear industry.

SMRs also benefit from modular construction. Unlike traditional reactors requiring extensive on-site assembly, SMRs can be built in factories and transported to deployment sites. This reduces construction delays and cost overruns, a key challenge in past nuclear projects.

Fuel Efficiency and Waste Management

SMRs use low-enriched uranium (LEU) fuel, adhering to nonproliferation standards. However, waste management remains an issue. The U.S. lacks a permanent disposal site, forcing utilities to store spent fuel onsite. Holtec’s Palisades site will use underground storage casks with a 120-year rating, but this is not a long-term solution.

Some companies are developing alternative waste strategies. The UK-based startup Newcleo is working on lead-cooled fast reactors that use recycled nuclear waste as fuel. These technologies could change how nuclear waste is managed in the future.

Economic and Policy Challenges

Cost Overruns and Market Viability

Despite their advantages, SMRs are expensive. Some analysts argue that their smaller size limits revenue potential, making them less competitive than renewables and natural gas. The Vogtle nuclear plant in Georgia cost $37 billion and took 15 years to complete, serving as a cautionary example. SMR advocates argue that modularity will drive down costs, but large-scale deployment is necessary to realize these savings.

Waste Management and Public Perception

Public opposition to nuclear waste remains strong. A 2018 investigation found over 60,000 tons of spent fuel stored near the Great Lakes. Activists worry about environmental risks, particularly at Holtec’s Palisades site on Lake Michigan. While underground storage offers a temporary solution, a permanent strategy is needed.

Future Outlook: Scaling SMRs for a Carbon-Constrained World

The 10-Gigawatt Vision and Global Deployment

Holtec and Hyundai’s plan for a 10-gigawatt SMR fleet could transform the nuclear industry. If the Palisades project succeeds, it could be a model for other sites. Internationally, the UK’s SMR competition and China’s aggressive nuclear strategy signal growing interest in small reactors.

Integration with Renewable Energy Systems

SMRs could complement wind and solar by providing reliable baseload power. Hybrid energy systems that integrate SMRs with renewables and battery storage could become key components of decarbonization efforts.

Final Thoughts

SMRs are advancing, but challenges remain. The Palisades project demonstrates the potential for public-private partnerships to drive innovation. However, economic barriers, waste management concerns, and regulatory complexity must be addressed.

The next decade will determine whether SMRs will become a mainstream energy source or remain a niche technology. With the right policy support and technological improvements, SMRs could play a crucial role in the global energy transition.