South Korea, US, Japan form SMR alliance to counter China, Russia

South Korea, the United States, and Japan have formalized a strategic technological alliance by agreeing to cooperate on Small Modular Reactors (SMRs). This move is widely interpreted as an effort to counter the expanding global presence of China and Russia in the nuclear power sector.

The cooperation agreement, signed by the foreign ministers of the three nations, aims to establish a government-level framework enabling South Korean, U.S., and Japanese nuclear industries to jointly enter the global SMR market, starting with the Indo-Pacific region. The initiative is reportedly driven by the U.S. to compete against Russia and China, who are aggressively increasing their market share with competitive pricing. The initial focus will be on exporting SMRs to countries in the Indo-Pacific, where nations like Indonesia, Thailand, Vietnam, and Singapore have announced plans for SMR adoption.

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The purpose of this cooperation agreement is to establish a government-level cooperation framework that allows the nuclear industries of South Korea, the U.S., and Japan to jointly enter the global SMR market, starting with the Indo-Pacific region.

This trilateral partnership leverages distinct strengths: the U.S. possesses leading SMR design technology, Japan offers supply chain expertise, and South Korea is recognized for its proven capabilities in adhering to construction schedules and budgets. By combining these elements, the alliance seeks to create synergy, establish SMR technological standards, and present a unified front against the growing dominance of state-backed nuclear enterprises from Russia and China. Russia's Rosatom is a major player in the entire nuclear fuel cycle, while China is rapidly expanding its domestic nuclear supply chain and is set to launch the world's first commercial SMR this year.

For South Korea, participation in this SMR cooperation offers potential benefits beyond market access. It provides an opportunity to secure next-generation nuclear technology, contribute to standardization efforts, and potentially bolster ongoing negotiations with the U.S. regarding uranium enrichment and reprocessing. Building trust and demonstrating capabilities within this SMR framework could positively influence discussions on enhancing South Korea's nuclear fuel partnership with the U.S., thereby strengthening energy security for both nations.

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The Indo-Pacific region is expected to see the largest increase in new nuclear power demand in the future. If the capabilities of South Korea, the U.S., and Japan are combined, we can provide competitive alternatives to countries in the region.