The nuclear industry is making a bold comeback, but with a twist! Nuclear startups are now embracing small reactors, aiming to revolutionize the sector and overcome past challenges. But is this a game-changer or a risky move?
The industry is witnessing a revival, with old plants getting a new lease of life and investors pouring billions into startups. In the final weeks of 2025, nuclear startups secured a staggering $1.1 billion in funding (https://techcrunch.com/2025/12/17/radiant-nuclear-raises-300m-for-its-semi-sized-1-mw-reactor/), fueled by the belief that smaller reactors will succeed where larger ones have struggled. But here's where it gets controversial—are these tiny reactors the solution, or just a costly fad?
Traditional nuclear reactors are colossal structures. Take the Vogtle 3 and 4 in Georgia, which use tens of thousands of tons of concrete and towering fuel assemblies to generate over 1 gigawatt of electricity each. But these behemoths also faced massive delays and budget overruns, costing an additional $20 billion.
Nuclear startups believe that by downsizing reactors, they can avoid these issues. Need more power? Simply add more reactors. They argue that smaller reactors can be mass-produced, and as production increases, costs should decrease. But is this assumption too good to be true?
Experts are still debating the extent of these potential benefits (https://www.sciencedirect.com/science/article/pii/S2589004224028712#sec2). Manufacturing is no easy feat, as Tesla's struggles with the Model 3 demonstrate. And the U.S. nuclear industry faces a unique challenge—a lack of domestic manufacturing expertise. Milo Werner (https://www.linkedin.com/in/milowerner/), a general partner at DCVC, reveals a startling fact: "We've forgotten how to make certain materials in the United States." Werner, with her background in manufacturing at Tesla and FitBit, knows the challenges firsthand.
Werner highlights two critical issues for manufacturers: capital and human capital. Fortunately, the nuclear industry has ample funding. However, the lack of experienced personnel in the U.S. is a significant concern. After decades of offshoring, the country lacks seasoned professionals in factory construction and operations. Werner notes that this skills gap extends from machine operators to top-level executives.
Despite these challenges, there's a silver lining. Startups are bringing manufacturing closer to home, allowing for rapid improvement cycles. And the key to success? Start small and scale up. This modular approach enables startups to gather valuable data and demonstrate progress to investors. But the road to mass manufacturing is a long one, and cost reductions may take years to materialize.
Tim De Chant, a senior climate reporter at TechCrunch, brings a wealth of experience to the table. With a PhD in environmental science and a background in journalism, he offers a unique perspective on this complex industry. Reach out to him at tim.dechant@techcrunch.com to learn more.
Are small nuclear reactors the future of energy, or a risky gamble? Share your thoughts in the comments below!
