SMR industry faces delays as supply, financing and licensing challenges persist

Enthusiasm for small modular reactors (SMRs) in the early 2020s has waned as supply‑chain disruptions, technical difficulties, financing constraints and regulatory hurdles have slowed progress. Only Russia's floating Akademik Lomonosov plant and China's HTR‑PM are currently grid‑connected and operating commercially, while most Western projects remain in licensing or early‑deployment stages.

The United States continues to back private SMR development through favorable policies, executive orders and an $800 million DOE funding package for the Tennessee Valley Authority and Holtec Government Services. A $40 billion U.S.–Japan partnership aims to deploy GE Vernova Hitachi BWRX‑300 SMRs in Tennessee and Alabama. In the United Kingdom, Rolls‑Royce was chosen as the preferred SMR developer with more than $800 million from the national wealth fund, and a Swedish firm has selected Rolls‑Royce SMR for a multibillion‑pound export deal.

Despite over 120 distinct SMR designs worldwide, many have not yet achieved licensing and face challenges such as dependence on high‑assay low‑enriched uranium (HALEU) fuel. Countries including Canada, France, Japan, South Korea and others are pursuing SMR programs, but commercial deployment remains limited.