What Small Modular Reactors Really Cost: Project Cancellations and Rising Prices

Small Modular Reactor: disclosed figures

Sources: the numbered public sources listed below.

What makes up the cost

The cost of Small Modular Reactors (SMRs) encompasses construction, power generation, and specialized materials. Construction costs are significant, as evidenced by the NuScale Power and UAMPS project, which saw its estimated cost rise from $5.3 billion to $9.3 billion for a 462-megawatt SMR project [1][2]. Power generation costs are also critical, with the target price for power from the same NuScale project increasing by 53% to $89 per megawatt-hour (MWh) [1][2]. Specialized materials, such as NBG-18 graphite for X-energy's Xe-100 reactors, require substantial investment to scale production capacity [13]. Financing and government support play a crucial role in offsetting these high initial costs, as seen with Kairos Power and Rolls-Royce SMR [3][4][9]. The market was worth $1.0 Bn in 2025 and is forecast to reach $6.2 Bn by 2035, a CAGR of 20.0%.

Disclosed prices and cost points

Several key cost points have been disclosed in the SMR market. The estimated construction cost for NuScale Power and UAMPS' 462-megawatt SMR project increased from $5.3 billion to $9.3 billion in January 2023 [1][2]. The target price for power from this project also rose to $89 per MWh, up from $58/MWh in mid-2021 [1][2]. The Carbon Free Power Project (CFPP) had an estimated total cost of $9.3 billion, with $5.1 billion net to UAMPS after support [2]. Kairos Power LLC secured $643 million in combined private and government financing for its Hermes 2 Demonstration Reactor project [3]. The U.S. Department of Energy committed up to $303 million to Kairos Power's Hermes Low-Power Demonstration Reactor project [9]. Rolls-Royce SMR's program is backed by £2.5 billion in government funding, with an additional £599 million committed for a facility [4].

How costs are moving and why

Costs in the SMR market are generally increasing. The estimated construction cost for NuScale Power and UAMPS' SMR project rose by 75%, from $5.3 billion to $9.3 billion [1][2]. Concurrently, the target price for power from this project increased by 53% to $89 per MWh [1][2]. This upward trend led to the cancellation of NuScale Power's Carbon Free Power Project (CFPP) in November 2023 [2]. The reasons for these increases often involve escalating material costs, supply chain complexities, and the nascent nature of SMR technology requiring significant R&D investment. Despite these challenges, substantial funding continues to flow into the sector. Kairos Power secured $643 million in financing for its Hermes 2 project [3], and X-energy raised approximately $1.1 billion in net proceeds from its IPO [6][7].

What could bend the cost curve

Several factors could influence the future cost trajectory of SMRs. Government funding and strategic investments are critical, as demonstrated by the £2.5 billion UK government backing for Rolls-Royce SMR and the $275 million from the US Energy Department for Kairos Power [3][4]. Increased production capacity for key materials, such as X-energy's investment to double SGL Carbon's NBG-18 graphite production by 2030, could lead to economies of scale and lower component costs [13]. Technological advancements and standardization of designs could also reduce construction and operational expenses. However, project cancellations, like NuScale Power's CFPP, which had an estimated total cost of $9.3 billion, highlight the risks and potential for cost overruns that could keep prices high [2].

Who gains and who is squeezed

Companies securing significant government and private funding are gaining traction. Kairos Power LLC secured $643 million in combined private and government financing for its Hermes 2 project [3], and the U.S. Department of Energy committed up to $303 million to its Hermes Low-Power Demonstration Reactor project [9]. Rolls-Royce SMR benefited from a £2.5 billion government program and a £599 million commitment for a facility [4]. X-energy closed its IPO, raising approximately $1.1 billion [6][7]. Conversely, companies facing cost overruns and project cancellations are squeezed. NuScale Power and UAMPS saw their SMR project's estimated cost increase by 75% to $9.3 billion, leading to the cancellation of the CFPP [1][2]. Ultra Safe Nuclear Corporation (USNC) filed for Chapter 11 bankruptcy, selling assets for $28 million and $8.5 million [11][12].

What it means for buyers and suppliers

For buyers, the rising costs and project cancellations, such as NuScale Power's CFPP with its $9.3 billion estimated cost, indicate that SMR deployment remains a high-cost endeavor [2]. The target price for power at $89 per MWh also suggests higher electricity costs for end-users [1][2]. Buyers must factor in potential cost escalations and project delays when considering SMR adoption. For suppliers, the market presents opportunities for those who can secure substantial funding and manage costs effectively. Rolls-Royce SMR's contract with GBE-N for the UK's first three SMRs, backed by £2.5 billion, illustrates significant government commitment [4]. However, the bankruptcy of Ultra Safe Nuclear Corporation (USNC) underscores the competitive pressures and financial risks within the supply chain [11][12].

What it means for buyers and suppliers

For buyers, the rising costs and project cancellations, such as NuScale Power's CFPP with its $9.3 billion estimated cost, indicate that SMR deployment remains a high-cost endeavor [2]. The target price for power at $89 per MWh also suggests higher electricity costs for end-users [1][2]. Buyers must factor in potential cost escalations and project delays when considering SMR adoption. For suppliers, the market presents opportunities for those who can secure substantial funding and manage costs effectively. Rolls-Royce SMR's contract with GBE-N for the UK's first three SMRs, backed by £2.5 billion, illustrates significant government commitment [4]. However, the bankruptcy of Ultra Safe Nuclear Corporation (USNC) underscores the competitive pressures and financial risks within the supply chain [11][12]. The market was worth $1.0 Bn in 2025 and is forecast to reach $6.2 Bn by 2035, a CAGR of 20.0%.

About the data

Facts in this cost analysis come from the dated public sources listed below - company announcements and filings, regulators and business and trade news - cited by number in the text. Market size figures are Market-Reports.com estimates (US dollars, base year 2025, forecast to 2035). Statements about what developments mean are our assessment, not reported fact.

Sources

1. [1] ieefa.org
2. [2] smrbrief.com
3. [3] constructionreviewonline.com
4. [4] esgtoday.com
5. [6] x-energy.com
6. [7] sec.gov
7. [9] kairospower.com
8. [10] ans.org
9. [11] world-nuclear-news.org
10. [12] elevenflo.com
11. [13] nanonuclearenergy.com