Rolls-Royce is advancing its plans to supply small modular reactors (SMRs) to several countries, aiming to reduce reliance on Russian energy. The company has secured agreements to provide SMRs to the Czech Republic, Sweden, and the UK, with discussions underway for further expansion in Eastern Europe and potentially the United States. These SMRs are factory-built modules designed for faster and more cost-effective deployment compared to traditional large nuclear power stations.
The UK government has shown strong support for Rolls-Royce’s SMR initiative, viewing it as a way to boost domestic industry and energy independence. The first UK SMRs are slated for construction at Wylfa in North Wales, with completion expected by the mid-2030s. Officials have highlighted the potential for these projects to rejuvenate Britain's manufacturing sectors and create thousands of jobs. The company estimates the SMR program could generate up to 40,000 jobs and £50 billion in economic benefits by 2050.
However, questions have arisen about how much of the SMR manufacturing will actually be based in the UK. While Rolls-Royce states its commitment to maximizing domestic content, key components such as reactor pressure vessels are planned to be sourced from overseas suppliers, including South Korea’s Doosan and the Czech nuclear firm CEZ. This procurement decision has sparked criticism from some UK industry groups and parliamentarians, who express concern about lost opportunities for British manufacturers.
Government and industry insiders explain that the specialized nature of reactor components and the ambitious project timelines make foreign sourcing necessary for initial units, with an eye toward building UK supply chain capabilities over time. The reactor island—housing sensitive nuclear equipment—is estimated to represent about 20–25% of an SMR’s production value, but the pressure vessel itself accounts for less than 0.5%. Meanwhile, other parts such as steam turbines will be supplied by Siemens Energy, a German company with a UK manufacturing presence, and reactor protection systems will be produced by Dorset-based Curtiss-Wright.
Rolls-Royce is also seeking a site in the UK to establish a large-scale SMR module assembly facility, with potential locations including Sunderland, Teesside, Deeside, and other industrial areas. This factory would assemble the pre-fabricated modules for transportation to construction sites, potentially adding hundreds of millions of pounds to the UK economy and supporting local employment. Collaboration with foreign firms continues at this stage as well, with Oslo-based Aker Solutions selected as the primary partner for module engineering and project management.
UK officials emphasize the broader industrial strategy around SMRs includes efforts to develop domestic competence and infrastructure, expecting that over time a greater proportion of the supply chain will be localized. Lord Vallance, minister for nuclear, cited “excellent progress” toward the government’s target of 70% British-built content in the SMR fleet.
As Rolls-Royce competes in a growing global market that includes rivals like GE Vernova, the UK government and industry stakeholders face a balancing act between achieving rapid deployment, cost efficiency, and long-term domestic industrial benefits. The decisions around sourcing and manufacturing will be closely watched as the SMR program moves forward, with the potential to shape the future of British nuclear energy and its role in meeting domestic and international demand.