Hyundai’s Nuclear SMR Strategy: A 2025 Analysis of its Global Power Play

Industry Adoption: How Hyundai is Engineering the SMR Supply Chain from AI Data Centers to Maritime Shipping

Between 2021 and 2024, Hyundai executed a deliberate market entry into the small modular reactor (SMR) space, establishing a foundational strategy centered on becoming an indispensable Engineering, Procurement, and Construction (EPC) partner. The company avoided the high-risk, capital-intensive path of proprietary reactor design, instead forging a portfolio of partnerships with leading technology developers. This period was characterized by strategic equity investments, such as the $30 million stakes in both Ultra Safe Nuclear Corporation (USNC) and TerraPower, which secured Hyundai exclusive or preferential EPC rights for a diverse range of advanced reactor technologies, including micro-modular reactors (MMRs), pressurized water reactors (PWRs), and sodium-cooled fast reactors (SFRs). The commercial applications were broad and forward-looking, targeting remote industrial power, future maritime propulsion, and grid-scale electricity. This initial phase was a masterclass in risk mitigation, leveraging Hyundai’s proven large-scale construction credentials, best exemplified by its successful delivery of the UAE’s Barakah Nuclear Power Plant, to build credibility as a bankable partner for the next generation of nuclear projects.

The period from 2025 to today marks a dramatic inflection point, where Hyundai’s strategy transitioned from building partnerships to executing mega-projects. The focus has sharpened on two key, high-demand applications: powering AI data centers and decarbonizing maritime shipping. The most significant development is Hyundai E&C’s role in the ambitious 11 GW HyperGrid AI campus in Texas with Fermi America. The October 2025 basic design contract for four large-scale AP1000 reactors and a 2 GW SMR complex demonstrates a move from theoretical SMR deployment to concrete, large-scale commercial contracts driven by the insatiable energy needs of the AI industry. This single project, valued at $500 billion, positions Hyundai at the epicenter of the energy-for-AI boom. Simultaneously, the company’s maritime ambitions have moved from concept to near-term reality. Designs for an SMR-powered 15,000 TEU containership and a Floating Nuclear Power Barge have received Approval in Principle (AIP) from the American Bureau of Shipping (ABS), a critical validation step toward commercial feasibility. This shift reveals that SMR adoption is no longer a generalized clean energy goal but a targeted solution for specific, well-funded industrial challenges, with Hyundai emerging as the critical execution powerhouse capable of building the required infrastructure at scale.

Table: Hyundai’s Strategic Investments in Nuclear SMRs

Table: Hyundai’s Key Nuclear SMR Partnerships and Agreements

Geography: Hyundai’s Strategic Shift to the U.S. Nuclear Market

Between 2021 and 2024, Hyundai’s geographic strategy for SMRs was one of broad, strategic diversification. The company established footholds in key regions poised for nuclear growth. In North America, partnerships with USNC and Holtec established a presence in Canada and the U.S., targeting early SMR demonstration projects. In Europe, Hyundai was actively pursuing opportunities in emerging nuclear markets, signing a series of agreements in Poland, entering the UK’s SMR competition as part of Team Holtec, and securing a major win to build two AP1000 reactors at Bulgaria’s Kozloduy plant. This wide-ranging approach allowed Hyundai to plant flags in multiple jurisdictions, mitigating single-market risk and positioning itself for various regulatory and political environments.

From 2025 onwards, while maintaining its global ambitions, Hyundai’s operational focus has dramatically consolidated around the United States. The U.S. has unequivocally become the main theater for the company’s nuclear strategy. This shift is driven by a confluence of powerful factors: massive private sector demand for clean power, particularly from the AI industry; significant government financial support, exemplified by the up to $400 million in DOE funding for the Holtec-Hyundai Palisades project; and the presence of leading technology partners. Two projects underscore this pivot: the deployment of two SMR-300 units at the Palisades plant in Michigan and the colossal 11 GW Fermi America HyperGrid project in Texas. These are no longer exploratory MoUs but tangible, large-scale construction contracts that anchor Hyundai’s activities firmly on U.S. soil. While the July 2025 MoU with the UAE’s ENEC signals an intent to leverage its Barakah success for future global projects, the immediate center of gravity for capital, engineering, and construction is now overwhelmingly in America.

Technology Maturity: Hyundai’s Role from Demonstration to Commercial Scale-Up

In the 2021-2024 period, Hyundai’s involvement was primarily with SMR technologies in pre-commercial or demonstration phases. The strategy was to engage early and co-develop the construction and manufacturing roadmaps. For example, its work with Holtec on the SMR-160 and SMR-300 focused on finalizing standard designs and construction specifications. The partnership with USNC centered on the EPC plan for the first-of-a-kind MMR demonstration plant at Canada’s Chalk River Laboratories, targeted for a 2026 launch. Similarly, the initial investment and collaboration with TerraPower were aimed at developing manufacturing solutions for the Natrium reactor, well ahead of its planned 2030 completion. During this phase, Hyundai’s role was that of a strategic enabler, helping move advanced reactor concepts from the drawing board toward bankability and constructability.

The period from 2025 to today has seen a marked shift from planning to execution, with Hyundai now engaged across the full spectrum of technology maturity.
* Commercial Scale-Up: For proven technology like the AP1000 large reactor, Hyundai has moved directly to commercial deployment at an unprecedented scale. The basic design contract for four AP1000s at the Fermi America site leverages a commercially mature design for a massive new application.
* First-of-a-Kind Commercial Deployment: The Holtec SMR-300 project at Palisades represents a critical transition. Backed by U.S. government funding and a firm EPC contract with Hyundai, this project is on a clear path to becoming the first commercial SMR-300 fleet, with construction slated for 2026 and operation by 2030.
* Component Manufacturing for Demonstration: The collaboration with TerraPower has matured to the point of tangible manufacturing. Hyundai’s August 2025 contract to supply the reactor vessels for the Natrium demonstration plant is a key validation point, moving the technology from design to physical reality.
* Advanced Concept Validation: Hyundai’s futuristic maritime SMR applications have taken a significant step forward. The designs for a nuclear-powered container ship and floating power barge received Approval in Principle (AIP) from the American Bureau of Shipping (ABS) in 2025, validating their technical feasibility and paving the way for potential pilot projects. This demonstrates a clear progression from conceptual ideas to projects with third-party technical endorsement.

Table: SWOT Analysis of Hyundai’s Nuclear SMR Strategy

Forward-Looking Insights: Execution is the New Strategy

The data from 2025 signals that Hyundai’s SMR strategy has entered a new, critical phase where execution will define success. The era of signing MoUs and forming partnerships is giving way to the hard work of engineering, procurement, and construction on an unprecedented scale. The year ahead will be less about new announcements and more about delivering on existing promises. Market actors should shift their focus from who Hyundai is partnering with to *how* it is performing on its landmark projects.

Three signals will be paramount to watch:
1. Palisades Construction Milestone (End of 2026): Hyundai E&C’s ability to break ground on the two SMR-300 units at Palisades by the end of 2026 will be the most significant near-term validator of its strategy. Meeting this timeline for a first-of-a-kind SMR in the U.S. would send a powerful message to the global market about the viability of the Holtec-Hyundai delivery model.
2. Fermi America Project Progress (2026-2027): The sheer scale of the 11 GW HyperGrid project in Texas makes it a bellwether for the entire nuclear industry. Progress on the initial site work and procurement for the AP1000s, scheduled to begin in 2026, will be a key indicator of Hyundai’s capacity to manage mega-projects and complex global supply chains under pressure.
3. Marine SMR Commercialization (2030 Goal): While the 2030 target for a marine nuclear business model is ambitious, the next critical step will be an announcement of a firm order or a funded pilot project for either the SMR-powered containership or the floating power barge. This would move the concept from a technically approved design to a commercially backed venture.

What is gaining traction is Hyundai’s “picks and shovels” approach—positioning itself as the essential builder for the nuclear renaissance, regardless of which specific reactor technology ultimately dominates. What is losing steam is the notion that a single SMR design will be a silver bullet. Hyundai’s diversified portfolio approach, now being put to the test in the U.S. and beyond, suggests the future of nuclear energy will be built by those who can execute, not just innovate.

Frequently Asked Questions

Why is Hyundai focusing on building reactors for other companies instead of designing its own SMR?
Hyundai’s strategy is to leverage its proven expertise in large-scale Engineering, Procurement, and Construction (EPC), as demonstrated by projects like the UAE’s Barakah Nuclear Power Plant. By partnering with leading technology developers rather than designing its own reactor, Hyundai avoids the high-risk, capital-intensive path of technology development and licensing. This allows the company to act as an indispensable ‘picks and shovels’ execution partner for a diverse portfolio of reactor technologies, mitigating risk while capitalizing on its core construction strengths.

What are the main industries Hyundai is targeting with its SMR strategy?
Since 2025, Hyundai has sharpened its focus on two key, high-demand applications: powering energy-intensive AI data centers and decarbonizing the maritime shipping industry. Projects like the 11 GW HyperGrid AI campus in Texas directly address the former, while the development of SMR-powered container ships and floating power barges targets the latter.

Why has Hyundai’s strategic focus shifted so heavily to the United States?
Hyundai’s operational focus has consolidated on the U.S. due to a convergence of powerful factors: massive private sector demand for clean power from the AI industry, significant government financial support through programs like the DOE funding for the Palisades project, and the physical presence of its key technology partners like Holtec, TerraPower, and USNC. This makes the U.S. the primary theater for turning SMR plans into tangible construction projects.

Has Hyundai actually started building any of these new nuclear projects yet?
While physical construction on an SMR has not yet begun, Hyundai has moved beyond preliminary agreements to securing firm contracts for execution. For the Holtec SMR-300 project at Palisades, Michigan, construction is slated to start in 2026 with a 2030 operation target. The company has also secured contracts for the basic design of the Fermi America project and to manufacture key components like the reactor vessel for TerraPower’s demonstration plant, marking a definitive shift from planning to execution.

What is the biggest risk to Hyundai’s nuclear strategy going forward?
The primary threat to Hyundai’s strategy has shifted from general market uncertainty to specific, large-scale execution risk. The company is now exposed to the challenges of delivering ambitious, first-of-a-kind (FOAK) projects like the Palisades SMRs and the massive Fermi America campus on schedule and within budget. Its success is now acutely tied to its performance on these complex projects and its partners’ ability to meet their technology and licensing milestones.