SK Innovation has agreed to formally cooperate with US advanced nuclear technology company TerraPower on the global commercialization of Natrium, TerraPower's next-generation non-light-water small modular reactor.
The partnership is expected to strengthen SK Group's electrification capabilities as part of its broader AI value chain strategy.
SK Innovation said Friday that CEO Chu Hyung-wook met with TerraPower CEO Chris Levesque at an undisclosed location in Seoul to sign the agreement.
SK Innovation and SK Group had previously made a combined investment of $250 million in TerraPower, securing the position of second-largest shareholder.
The Natrium SMR is a fourth-generation sodium-cooled fast reactor developed by TerraPower. It has drawn attention as an optimal solution for supplying large-scale power to data centers and similar facilities, as it can store heat generated by the reactor and deploy it during periods of peak demand.
The agreement covers expanded SK Innovation participation in TerraPower's SMR demonstration reactor under construction in the United States and subsequent commercial projects, plans to increase use of South Korea's domestic SMR supply chain, and the joint development of domestic Natrium SMR projects and global SMR opportunities.
"SK Innovation has expanded its role from a strategic investor in TerraPower to a direct participant in SMR project development and execution," a company official said. The official added that the agreement is significant in that both companies will work with governments to examine the direction of K-Natrium — a Korea-specific Natrium SMR business model — taking into account global industrial and grid characteristics as well as regulatory environments.
The two companies plan to conduct a comprehensive review of regulatory, industrial and grid conditions related to global projects, and on that basis will gradually define the direction of the K-Natrium business model.
They also plan to broaden the involvement of domestic research and design institutions and nuclear and power equipment manufacturers, with the aim of building a domestic supply chain for key Natrium SMR components and establishing a Korea-specific design and project execution framework.
SK Group Chairman Chey Tae-won and TerraPower board chairman Bill Gates attended a dinner Friday, where they discussed how to meet rising power demand driven by the spread of AI data centers, the future direction of the next-generation nuclear industry, and prospects for South Korea-US nuclear cooperation.
SK Innovation also agreed to expand its participation in Kemmerer Unit 1, TerraPower's Natrium SMR project under way in Wyoming, and in subsequent commercial projects. The project is the first commercial advanced reactor to receive a construction permit from the US government.
Through its involvement in the US demonstration project, SK Innovation aims to gain experience in the design, construction and operation of next-generation nuclear plants, which it intends to apply to future domestic deployment and global project development. The company also plans to explore SMR project development and operations in Asian markets beyond South Korea and the United States, including Vietnam, Indonesia and Malaysia.
The two companies also agreed to jointly examine ways to identify SMR projects in the United States that could be linked to policy and financial support from both governments. They plan to work out project-by-project feasibility assessments, financing arrangements, supply chain configurations, and construction and operating plans, while also exploring opportunities to cooperate with the US government and relevant agencies.
The collaboration is seen as a concrete step toward realizing Chairman Chey's "AI full-stack" vision through SMR-based power projects. Chey has consistently emphasized the need to build capabilities across the entire AI value chain — spanning memory chips, data center infrastructure, energy and electrification.
"This agreement is significant in that SK Innovation and TerraPower are working together to explore the domestic applicability of Natrium SMR to meet AI data center power demand and to expand our global business," Chu said. "We will work closely with TerraPower to define the direction of the K-Natrium business model, build our project development and operational capabilities through participation in US projects, and expand our presence in global markets."
klee@heraldcorp.com
