The United States and South Korea are expanding their strategic, long-term cooperation in the global nuclear power market, focusing on new reactor projects and supply chain integration. This initiative combines US technological expertise with South Korean supply chain capabilities. The US Department of Commerce indicated that the two countries plan to construct eight new large reactors, comprising six AP1000 units and two APR1400 units, as part of the US president's goal to have 10 large reactors under construction by 2030. The specific locations for these units have not yet been determined.
The project involves substantial financial commitments, with an estimated USD100 billion allocated for construction costs and an additional USD20 billion for contingency reserves. Both countries have agreed to facilitate a USD10 billion advance payment by the end of the year. This payment is primarily intended for the immediate procurement of long-lead items, adhering to all applicable domestic legal requirements. Individual projects will be announced as sites, schedules, and commercial terms are finalized.
The framework agreement also contemplates a waiver under the 2025 settlement agreement between Westinghouse and Korea Electric Power Corporation (
KEPCO) regarding intellectual property. This waiver would permit the construction of up to two APR1400 reactors in the United States. The associated compensation package is expected to recognize the use of Westinghouse intellectual property and technology, providing approximately USD2 billion of value per APR1400 reactor. This value will be realized through a combination of intellectual property licensing, engineering and procurement services, subcontracting opportunities, and the long-term supply of fuel fabrication services. This highlights Westinghouse's strategic role across the planned reactor projects in the US.
KEPCO welcomed the framework agreement, stating it reaffirms the 2025 US-Korean memorandum of understanding on strategic investment. KEPCO plans to contribute to the successful implementation of these projects, drawing on its experience from the domestic power industry and the UAE Barakah nuclear power project. The entry of the Korean-designed APR1400 into the US market is expected to demonstrate the technological and project management capabilities of the South Korean nuclear industry, facilitating the entry of domestic nuclear companies into the US market and expanding their participation in global supply chains.
Additionally, a significant minority equity investment in Westinghouse by South Korean companies is anticipated, with details to be finalized later. Cameco, which holds a 49% ownership stake in Westinghouse, stated that this potential equity participation is not expected to affect its ownership interest. Cameco also noted that the agreement envisions the deployment of new units on federal sites, beginning with two AP1000 units.