Nuclear startups are back in vogue with small reactors, and big challenges

The nuclear industry is experiencing a resurgence, driven by significant investment in startups focused on small modular reactors (SMRs). Unlike traditional nuclear plants, which are massive, costly, and prone to delays—as exemplified by the Vogtle 3 and 4 reactors in Georgia that were eight years late and over $20 billion over budget—these startups aim to build smaller reactors that can be mass-produced. The rationale is that smaller reactors can be added incrementally to meet power demands and benefit from manufacturing efficiencies that reduce costs over time. However, experts remain uncertain about the scale of these cost reductions, though startups are betting on them being substantial. Despite abundant capital, the industry faces significant manufacturing challenges, particularly a shortage of skilled human capital and lost industrial expertise in the U.S. due to decades of offshoring and a lack of new factory construction. This shortage spans all levels, from factory floor operators to executives, hindering the ability to scale production efficiently. Yet, some optimism exists as startups are increasingly