The nuclear industry is experiencing a revival. Traditional plants are being refurbished, and new startups are attracting substantial investment. In just the last few weeks of 2025, nuclear startups raised $1.1 billion, fueled by optimism that smaller, more manageable reactors could succeed where the broader nuclear sector has faltered.
The Problem with Traditional Reactors
Traditional nuclear reactors are massive and complex. For example, the most recent reactors built in the U.S. Vogtle 3 and 4 in Georgia are monumental structures, containing tens of thousands of tons of concrete and towering fuel assemblies over 14 feet tall. Each generates over 1 gigawatt of electricity. However, these projects have been plagued by delays, with construction taking eight years longer than expected and costs soaring more than $20 billion over budget.
Smaller reactors, say the new wave of startups, offer a solution. By reducing the scale of the reactors, they aim to overcome the delays and ballooning costs that have plagued large-scale projects. If additional power is needed, the argument is simple: just add more reactors. The smaller units can be mass-produced, and as manufacturing techniques improve, the cost of production should decrease.
A Risky Bet on Mass Production
The promise of reduced costs through mass production is a compelling one, but experts are still working to quantify the actual benefits. Today’s nuclear startups are banking on it being a significant advantage. However, history offers a cautionary tale: Tesla, for example, faced considerable challenges when it tried to ramp up production of its Model 3, despite having deep expertise in the automotive industry. Nuclear startups, on the other hand, don’t have the same manufacturing advantages.
Milo Werner, a general partner at DCVC, points out that nuclear manufacturing in the U.S. faces significant hurdles. “We have to buy materials overseas,” Werner explained. “We’ve forgotten how to make them here.”
Werner, who has experience leading product introductions at Tesla and FitBit, is well aware of the manufacturing challenges. In addition to her work at DCVC, she co-founded the NextGen Industry Group, which focuses on advancing the adoption of new technologies in manufacturing. According to her, there are two major challenges when it comes to manufacturing: capital and human capital.
Capital: Not a Major Issue, But Human Capital Is
For most industries, capital is the biggest hurdle, as factories and equipment are expensive. However, the nuclear industry is currently flush with capital, which makes this less of an issue for startups. The more significant challenge, according to Werner, is the lack of experienced human capital. The U.S. has not built new industrial facilities in 40 years, leading to a lack of skilled workers who are familiar with factory construction and operations.
“We don’t have the muscle memory,” Werner explained. “It’s like we’ve been sitting on the couch for 10 years, and then trying to run a marathon the next day. It’s not good.”
The gap is especially noticeable in the nuclear sector, where experienced professionals are scarce. “We need a larger quantum of skilled people,” Werner said, emphasizing that the problem isn’t just with machine operators, but extends to factory floor supervisors, CFOs, and board members.
Turning the Tide: The Role of Startups
While the lack of experienced workers is a challenge, Werner is optimistic about the potential of nuclear startups to overcome these barriers. Many startups are building early versions of their products close to their technical teams, which can foster collaboration and accelerate manufacturing cycles. This proximity allows companies to learn quickly from their manufacturing processes and make adjustments as needed.
For the nuclear sector, modularity is key. By starting small and scaling up, companies can collect data on their manufacturing processes, enabling continuous improvement. “Really leaning into modularity is very important for investors,” Werner said, explaining that it helps startups keep production volumes low in the early stages while still collecting valuable insights.
However, achieving the benefits of mass manufacturing won’t be immediate. “It often takes years, sometimes a decade, to see the cost reductions that come from learning through manufacturing,” Werner said. Patience is required, but the payoff could be significant.
The nuclear industry’s comeback is rooted in the hope that smaller, mass-produced reactors can deliver reliable power at a lower cost. But the path forward is not without its challenges. The industry must overcome manufacturing hurdles, including a shortage of experienced workers and the need for capital-intensive facilities.
The next few years will likely reveal whether the benefits of modular, mass production in the nuclear space are as great as promised. If they are, the smaller reactors could play a key role in the global push toward clean energy. But for now, the industry is learning, iterating, and hoping that scaling up will eventually lead to a sustainable and profitable future.