■ Korea Hydro & Nuclear Power (KHNP) acquires a stake in TerraPower from SK Innovation, marking the first direct SMR investment by a Korean public enterprise.
■ The three-way alliance will accelerate the deployment of the world’s first commercial SMR plant and drive the expansion of the global SMR supply chain.
■ SK Innovation will deliver integrated energy solutions to address power supply challenges for the fast-growing AI industry.
SK Innovation announced that it has transferred part of its stake in TerraPower, a US-based next-generation small modular reactor (SMR) developer, to Korea Hydro & Nuclear Power(KHNP), strengthening the three-way partnership to advance the global SMR market.
On January 21 (Korean local time), SK Innovation confirmed the completion of the share transfer to KHNP. This marks the first time a Korean public energy enterprise has directly invested in a world-leading SMR developer.
Found in 2008, TerraPower is constructing the world’s first commercial SMR plant in Wyoming, USA, targeting completion by 2030. The plant utilizes TerraPower’s advanced Natrium® reactor technology, which integrates gigawatt-scale energy storage systems. Renowned for its cutting-edge technology, high safety standards, and environmental benefits, TerraPower’s SMR is considered as a game-changer for resolving the power shortages faced by the rapidly expanding AI industry.
SMR can not only significantly reduce construction time and costs through its modular design, but also allows rapid, phased expansion to meet surging electricity demand. Its ability to provide stable, 24/7 power makes SMR an optimal solution for industries requiring large-scale power infrastructure, such as AI data centers.
TerraPower’s Natrium® SMR technology stands out for its ability to flexibly adjust power output using integrated energy storage systems, enabling load-following operations that efficiently balance fluctuating renewable energy sources. This unique capability offers significant advantages over other SMR technologies.
KHNP successfully completed the review process by the US Committee on Foreign Investment (CFIUS) in December 2025, establishing a regulatory foundation for its entry into the global SMR market. SK Innovation and SK Inc. invested in TerraPower in August 2022, becoming the company’s second-largest shareholder—a position SK Innovation will retain following the partial share sale.
The three companies began their cooperation in April 2023 by signing a Memorandum of Understanding (MOU) for “SMR Development and Demonstratio”’ to expand the global SMR supply chain. Following KHNP’s investment, the partners plan to pursue additional SMR construction projects in the US and overseas, as well as finalize a business agreement for SMR deployment in Korea.
SK Innovation aims to combine its global competitiveness in energy and materials with KHNP’s world-class expertise in nuclear power plant construction and operation. Together, they plan to establish SMR ecosystems for data centers and other industrial sites in Korea and overseas, and deliver customized integrated energy solutions to address the power supply challenges of the AI era.
Chris Levesque, CEO of TerraPower, stated, “TerraPower has built strong relationships with multiple Korean companies across the nuclear energy supply chain. Today’s announcement marks another step toward realizing our vision of bringing Natrium’s promise to deliver next-generation nuclear power not just in the United States, but around the world. We are proud to welcome KHNP to our group of investors, continuing our years of strategic collaboration with SK and KHNP.”
Park In-sik, Executive Vice President and Head of the Export Business Division at KHNP, said, “This investment is a major milestone for KHNP in securing global leadership in next-generation nuclear energy. By combining our 50 years of experience in nuclear plant construction and operation with SK Innovation’s competitiveness in energy and TerraPower’s technology, we will play a leading role in expanding the SMR market. The three companies plan to sign definitive commercialization agreements within the first half of this year to establish a foundation for global SMR projects in North America and beyond.”
Moohwan Kim, Executive Vice President and Head of Energy Solution Business Division at SK Innovation added, “KHNP’s investment in TerraPower solidifies our three-way collaboration in the global SMR business. SK Innovation will work closely with KHNP to support the Wyoming project, pursue overseas SMR opportunities, and achieve innovative outcomes including localization of key materials and components.”
Meanwhile, recent international media reports indicate that global tech giant Meta has expressed its intention to participate in TerraPower’s next-generation SMR project. Meta plans to provide funding to develop two reactor units capable of producing up to 690 MW of electricity by 2032, and to secure rights to purchase energy generated from an additional six reactors by 2035. Industry experts expect that as cooperation among the three parties deepens, the likelihood of SK Innovation and KHNP participating in Meta-related projects may increase.
[Photo] (From left) Moohwan Kim, Executive Vice President and Head of the Energy Solution Business Division at SK Innovation, Park In-sik, Executive Vice President and Head of the Export Business Division at KHNP, and Chris Levesque, CEO of TerraPower, pose for a commemorative photo following an SMR cooperation meeting at TerraPower’s headquarters in Seattle, the United States, on January 15th, 2026 (local time).
