For decades, the cost of building nuclear power plants in the United States has been climbing, while China has managed to slash its nuclear construction costs by half over the past 20 years. A viral chart circulating in tech circles, based on a Nature study analyzing all reactors built since 1970, illustrates this stark contrast: US nuclear costs have soared since the 1960s, while China’s have plummeted and stabilized. While the West chased innovative reactor designs, China mastered the art of standardizing and scaling proven models.
The US: A Tale of Escalating Costs
Since 2013, the US has brought only two new reactors online, both at the Vogtle nuclear plant in Georgia. These took 11 years to build at a staggering cost of $35 billion, or roughly $15 per watt of capacity. The turning point for the US nuclear industry came in 1979 with the Three Mile Island accident, which prompted regulators to impose stringent safety requirements.
Approval timelines ballooned, and every design change required separate authorization. Compounding the issue, US developers pursued unique reactor designs, turning each project into an expensive R&D endeavor.
A similar story unfolded in France, where a shift to homegrown reactor designs in the 1980s led to cost overruns and delays. The Flamanville 3 reactor, for instance, has been under construction for over 15 years.
In the late 2000s, the US attempted to revive its nuclear industry with the AP1000 reactor, designed for enhanced safety. But the technology was untested, leading to unforeseen cost spikes, issues with cooling pumps, and regulatory delays at Vogtle. By the time the reactors were completed, most US energy companies had soured on new nuclear projects.
China’s Winning Formula
China took a different approach. Instead of reinventing the wheel, three state-owned companies focused on a few standardized reactor designs, building them repeatedly. The government supports this strategy with low-cost loans, guaranteed electricity purchase rates, and mandates for grids to prioritize nuclear power. Local manufacturers supply most components - from pipes to cranes - further driving down costs. Regulatory approvals are swift, taking weeks rather than years, with minimal interference once projects are greenlit.
Even after the 2011 Fukushima disaster, China doubled down on its nuclear ambitions, tightening safety standards while accelerating development of advanced reactors in collaboration with the US and France. The results are staggering: since 2013, China has built 13 reactors and has 33 more under construction, each completed in 5–6 years at a cost of $2–3 per watt. Since 2022, China has been building about 10 reactors annually and aims to triple its nuclear capacity by 2030, surpassing the US. Beyond domestic growth, China is exporting reactors to countries like Pakistan and exploring further markets, following a familiar pattern: Western innovation, Chinese scale, and global sales.
Why the US Fell Behind
The US nuclear industry has been hamstrung by a combination of regulatory overreach and a lack of standardization. The Nuclear Regulatory Commission (NRC) is often criticized for stifling innovation with excessive requirements, slowing certification for advanced reactor models. Meanwhile, the US has lost much of its manufacturing capacity for heavy reactor components, making it reliant on costly imports or lengthy retooling.
In contrast, China’s streamlined approach - standardized designs, robust supply chains, and supportive policies - has allowed it to dominate. While many Chinese reactors are based on American and French designs, their success lies in execution, not breakthroughs.