Right now, the United States is on an ambitious plan to increase its nuclear energy capacity by a third. The first spending bill laid the groundwork for constructing large nuclear power plants (NPPs) and small modular reactors (SMRs). This initiative is one piece of a broader, longer-term memorandum of understanding with Japan. It spells out actual initiatives that would go toward dramatically increasing the country’s energy production capacity. This action comes on the heels of President Donald Trump’s Executive Order issued in May. It intends to start construction on ten new large nuclear reactors by 2030.
This ambitious decades-long strategy is intended to modernize and quadruple the US nuclear power generation capacity. We have ambitious plans to grow that fleet – currently at 95-100 gigawatts electric (GWe) — to an impressive 400 GWe. The estimated cost for constructing these ten new nuclear plants is expected to be no less than $75 billion. Together, Japan and South Korea are prepared to make that monumental investment. The new collaboration is an indication of their increasingly rosy political relationship in the joint efforts to policies to the energy sector.
Investment and International Collaboration
Trade pacts that made this massive investment possible were signed while President Trump was on his Asian tour in October. Japan’s financial commitment is expected to be deep, too. They intend to invest a maximum of $332 billion to build a more diverse energy-related infrastructure with technologies including large-scale and small modular nuclear reactors. South Korea will be integral in financing these advances.
President Trump emphasized the importance of this international collaboration, stating, “We will build here, and the cash flow will be divided 50-50.” This strategy not only makes investment possible, but fosters a collective purpose among partner nations to drive the development of next generation nuclear technology.
The pacts don’t just flush billions in cash toward nuclear power, they tout increased “strategic” ties, more robust joint military exercises. These partnerships reach into classic weaponized strategic sectors, such as shipbuilding. This multifaceted collaboration is intended to deepen economic partnerships and improve energy security for all stakeholders.
Future Nuclear Capacity Goals
The new ambitious goal of quadrupling US nuclear capacity by 2050 speaks to a larger strategic realignment in energy policy. President Trump has articulated the necessity of expanding the country’s nuclear arsenal for power generation, asserting, “We need to have a nuclear arsenal for power generation in the United States.” This vision would further his administration’s larger agenda of rebuilding American manufacturing and maintaining energy independence.
Half of the rebirth is due to financial commitments from Japan and South Korea that will help pay to build the new reactors. It will rehabilitate the existing infrastructure, too. Our US-Japan bilateral investment detail sheet, published in late October. It signals a robust commitment to clean energy funding, laying out billions in funding across each clean energy sector, including for nuclear power.
As countries like Japan and South Korea step up their investments in US nuclear initiatives, they contribute to a larger conversation about energy security and sustainability in a rapidly changing global landscape.
