Bill Gates, founder of TerraPower and chairman of the Gates Foundation, met with key South Korean business leaders, including Chey Tae-won, chairman of SK Group, and Chung Ki-sun, chairman of HD Hyundai, on August 14. As TerraPower begins to ramp up construction of next-generation nuclear power plants in the United States, South Korean companies are expected to increase their participation in equipment supply and project involvement.
SK Innovation to Actively Participate in Global SMR Business with TerraPower
On the same day, SK Innovation, the second-largest shareholder of TerraPower, signed a memorandum of understanding to explore the global expansion of sodium-cooled small modular reactors (SMRs) and assess their domestic applicability.
Under this agreement, SK Innovation will broaden its participation in TerraPower's SMR demonstration plant and subsequent commercial projects currently under construction in the U.S. The two companies plan to collaborate on expanding the domestic SMR supply chain, developing sodium SMR projects in South Korea, and jointly identifying global SMR opportunities.
Following the signing, Gates and Chey held a dinner to discuss responding to power demand driven by the expansion of AI data centers, the future direction of the next-generation nuclear power industry, and potential U.S.-South Korea nuclear cooperation.
SK aims to address the initial power needs of AI data centers and industrial complexes using LNG power generation and energy storage systems (ESS), with a long-term vision of supplying SMRs as a stable, carbon-free baseload power source. This aligns with Chey's emphasis on the 'AI full-stack' strategy in the energy sector.
Chey has highlighted that few companies possess the necessary memory and data center infrastructure, along with the energy and electrification capabilities required in the AI era, asserting that SK Group has secured competitiveness across the entire AI value chain.
Choo Hyung-wook, CEO of SK Innovation, stated, "This agreement is significant as it signifies our collaboration with TerraPower to explore the domestic applicability of sodium SMRs and expand our global business. We will work closely with TerraPower to clarify the direction of the K-sodium business model and enhance our entry into the global market."
HD Hyundai Accelerates Investment in Sodium Reactor Manufacturing
HD Hyundai is also joining forces with TerraPower and Hyundai Engineering to capture the U.S. small modular reactor (SMR) market. On the same day, Chung Ki-sun and Gates engaged in in-depth discussions on various cooperation strategies for the commercialization of land-based reactors based on their current collaborative progress.
In May, HD Hyundai, TerraPower, and Hyundai Engineering established a partnership to commercialize the next-generation sodium reactor, with TerraPower providing sodium technology, HD Hyundai manufacturing key components, and Hyundai Engineering handling engineering, procurement, and construction (EPC).
HD Hyundai plans to accelerate investment in production facilities in preparation for the commercialization of the reactor, aiming to supply 2 to 3 reactor vessels annually. Chung expressed optimism, stating, "We expect to accelerate the commercialization of the next-generation reactor based on our collaborative framework encompassing technology, manufacturing, and EPC."
The collaboration between HD Hyundai and TerraPower has been ongoing since 2022, when HD Korea Shipbuilding & Offshore Engineering invested $30 million in TerraPower. HD Hyundai has been working on the production of cylindrical reactor vessels, having secured an order from TerraPower to begin production in December 2024.
* This article has been translated by AI.
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