■ SK Innovation, TerraPower Sign Key Terms Agreement on Sodium SMR Business Collaboration — Targeting AI Data Centers and Global Markets
SK Innovation and TerraPower have signed a key terms agreement to jointly explore the global expansion and domestic application potential of TerraPower’s next-generation non-light-water small modular reactor (SMR), Natrium, a sodium-cooled fast reactor.
SK Innovation announced on August 14 that Choo Hyeong-wook, CEO of SK Innovation, and Chris Levesque, CEO of TerraPower, met in Seoul and signed the agreement on sodium SMR business cooperation and global market expansion for next-generation SMRs. SK Innovation and SK Inc. jointly invested a combined USD 250 million in TerraPower in 2022, becoming the company’s second-largest shareholder.
■ Agreement Covers Expanded Cooperation Across the SMR Value Chain
The agreement signed on this occasion outlines a broad scope of cooperation, including: expanded participation by SK Innovation in the SMR demonstration reactor TerraPower is building in the United States and in follow-on commercial projects; expanded use of Korea’s domestic SMR supply chain; development of the sodium SMR business in Korea; and joint identification of global SMR project opportunities.
With respect to global business development, the two companies plan to jointly assess regulatory, industrial, and power grid conditions, and use these findings to progressively refine “K-Natrium,” a Korean-tailored sodium SMR business model.
The agreement signing was followed by a dinner attended by SK Group Chairman Chey Tae-won and TerraPower Board Chairman Bill Gates, where discussions also covered how to meet growing electricity demand driven by the expansion of AI data centers, the future direction of the next-generation nuclear power industry, and potential avenues for Korea-U.S. nuclear cooperation.
■ Natrium: A Next-Generation Sodium-Cooled Fast Reactor SMR
The Natrium SMR is a Generation IV sodium-cooled fast reactor (SFR) developed by TerraPower. By pairing the reactor with a molten salt-based thermal energy storage (TES) system, the design allows heat generated by the reactor to be stored and dispatched during periods of peak demand—delivering both stable baseload power and output flexibility. This combination has positioned Natrium as a leading next-generation energy solution for large-scale power consumers such as AI data centers, semiconductor fabs, and industrial complexes.
The significance of this agreement lies in combining TerraPower’s Natrium technology with SK Innovation’s energy business development and project management capabilities to jointly examine the direction of the K-Natrium business model—developed in consultation with the Korean government and calibrated to global industrial, grid, and regulatory conditions.
The two companies also plan to expand participation by domestic research and design institutions as well as Korean nuclear and power equipment manufacturers, with the goal of strengthening the domestic supply chain for core sodium SMR components and establishing a Korean-tailored design and project execution framework.
■ Expanded Participation in U.S. Demonstration Reactor and Follow-On Commercial Projects
SK Innovation plans to expand its participation in TerraPower’s Kemmerer Unit 1 sodium SMR project in Wyoming, as well as in subsequent commercial projects.
The Kemmerer Unit 1 SMR project is moving forward at full speed after receiving the first construction permit for a commercial advanced reactor in the United States from the U.S. Nuclear Regulatory Commission (NRC) in March.
Through its participation in the U.S. demonstration project, SK Innovation intends to gain hands-on experience in the design, construction, and operation of next-generation nuclear reactors, which it plans to leverage both to evaluate domestic applications and to develop projects globally. The company also plans to explore SMR project development and operating opportunities in Korea, the United States, and across Asian markets including Vietnam, Indonesia, and Malaysia.
In addition, the two companies agreed to jointly identify SMR project opportunities in the United States that could benefit from policy and financial support from both the Korean and U.S. governments. This includes developing project-specific feasibility assessments, financing structures, supply chain arrangements, and construction and operating plans, as well as exploring potential collaboration with the U.S. government and related agencies.
■ Building an Integrated Energy Platform Connecting LNG, ESS, and SMR
Through this agreement, SK Innovation’s role expands beyond that of a strategic investor in TerraPower to that of a direct participant in SMR business development and project execution. The agreement also provides a key growth driver for the electrification strategy SK Innovation has been pursuing.
SK Innovation holds direct LNG import, LNG power generation, and power business capabilities, while SK On continues to expand its battery and energy storage system (ESS) businesses. By combining these capabilities with its investment in TerraPower and its growing SMR business development expertise, SK Innovation is advancing an integrated energy platform that spans LNG, power, ESS, and SMR for large-scale power consumers.
In the near term, the strategy calls for using LNG power generation and ESS to meet the initial electricity demand of AI data centers and industrial complexes, while positioning SMR as a stable, carbon-free baseload power source over the mid- to long-term.
This strategy aligns closely with the “AI Full Stack” vision championed by SK Group Chairman Chey Tae-won. Chairman Chey has repeatedly emphasized that few companies possess the full range of capabilities needed for the AI era—spanning memory and data center infrastructure alongside the energy and electrification capabilities required to support them—and has pointed to SK Group as one of the few conglomerates with end-to-end capabilities across the AI value chain.
By connecting SK Hynix’s AI semiconductors, SK Telecom’s data centers and AI infrastructure, SK Innovation’s LNG, power, and SMR capabilities, and SK On’s ESS batteries, SK Group aims to build a group-wide supply chain covering the semiconductors, data centers, power, and energy storage required for AI data centers.
This collaboration is expected to serve as a turning point that translates the AI Full Stack vision into a concrete SMR-based power business.
Choo Hyeong-wook, CEO of SK Innovation, said, “This agreement is significant in that SK Innovation and TerraPower will jointly explore the domestic application potential of natrium SMRs to meet the growing electricity demand of AI data centers, while also collaborating to expand our global business. Through close communication with TerraPower, we will refine the direction of the K-Natridium business model, and by participating in projects in the U.S., we will build the business development and operating capabilities needed to expand our presence in the global market.”
[Photos]
(Photo 1) (From left) Chris Levesque, CEO of TerraPower; Choo Hyeong-wook, CEO of SK Innovation; Chey Tae-won, Chairman of SK Group; Bill Gates, Chairman of the Board of TerraPower; and Jeffrey Miller, Senior Vice President of Business Development at TerraPower, hold discussions ahead of a dinner at Seonhyewon in Jongno-gu, Seoul, on August 14.
(Photo 2) (From left) Chey Tae-won, Chairman of SK Group, and Bill Gates, Chairman of the Board of TerraPower, hold discussions ahead of a dinner at Seonhyewon in Jongno-gu, Seoul, on August 14.
(Photo 3) (Front row, from right) Choo Hyeong-wook, CEO of SK Innovation, and Chris Levesque, CEO of TerraPower, sign a key terms agreement on SMR business collaboration at Seonhyewon in Jongno-gu, Seoul, on August 14, followed by a commemorative photo with (back row, from right) Chey Tae-won, Chairman of SK Group; Kim Jung-kwan, Minister of Trade, Industry and Energy; and Bill Gates, Chairman of the Board of TerraPower.
(Photo 4) (From right) Choo Hyeong-wook, CEO of SK Innovation, and Chris Levesque, CEO of TerraPower, sign the key terms agreement on SMR business collaboration at Seonhyewon in Jongno-gu, Seoul, on August 14.
(Photo 5) (From right) Choo Hyeong-wook, CEO of SK Innovation, and Chris Levesque, CEO of TerraPower, sign and exchange the key terms agreement on SMR business collaboration at Seonhyewon in Jongno-gu, Seoul, on August 14.
