The nuclear industry is experiencing a resurgence, fueled by renewed interest in smaller, more modular reactor designs and significant investor funding. In the final weeks of 2025, nuclear startups secured $1.1 billion in investments, driven by optimism that these smaller reactors can overcome the challenges that have plagued the broader nuclear industry.

Traditional nuclear power plants are characterized by their massive scale and complexity. The Vogtle 3 and 4 reactors in Georgia, for example, utilize tens of thousands of tons of concrete, house 14-foot-tall fuel assemblies, and each generate over 1 gigawatt of electricity. However, these projects also faced significant setbacks, running eight years behind schedule and exceeding their budget by more than $20 billion.

A new generation of nuclear startups is betting that smaller reactor designs can offer a more efficient and cost-effective path forward. The core concept is to reduce the size of individual reactors, enabling mass production and modular construction techniques. The theory is that as companies manufacture more standardized reactor components, they will improve production efficiency and drive down costs. Experts are still evaluating the potential magnitude of these cost savings, but the startups are banking on a substantial reduction.

The appeal of small modular reactors (SMRs) lies in their potential for scalability. Instead of building a single, massive reactor, operators can add smaller reactors as needed to meet growing energy demands. This approach offers greater flexibility and reduces the upfront capital investment required for large-scale nuclear projects.

However, manufacturing at scale presents its own set of challenges. Ensuring quality control, managing supply chains, and navigating regulatory hurdles are all critical factors that will determine the success of these ventures.

The nuclear industry is hoping that these new designs will revitalize nuclear power as a viable source of clean energy.