Title: Advanced Reactor Supply Chain Assessment (GAIN Report)

Several net-zero scenario evaluations predict a rapid ramp up of nuclear energy in the coming decades. If this materializes, it will most likely strain the supply chains associated with the potential advanced reactor concepts awaiting deployment. To help assess the current and potential capacities of the various advanced reactor supply chains, the Gateway for Accelerated Innovation in Nuclear (GAIN) conducted a survey of companies able to produce components for advanced reactors in the near future (namely for sodium, gas-cooled, and molten salt reactors). Using an aggressive nuclear deployment scenario, the objective was to assess the ability of the various supply chains to meet the considerable demand projections for certain key components (vessels, heat exchangers, pumps, graphite, and sensors) and identify potential challenges. While individual companies were unable to meet the most optimistic nuclear deployment rate projections, it was found that on aggregate, a United States-based supply chain projected that expansion could be ramped up to meet a larger future demand of these components. However, meeting projected demand for several more complex items (namely gas or salt heat exchangers) was found to be more challenging. Deploying new reactors at scale necessitates the production of more and more supply chain components, requiring a ramp up in production. Supply chain companies were surveyed, and respondents appeared less able to meet short term demand (next year) versus longer-term demand projections (5 and 10 years). This reflects the need to obtain orders with adequate lead times (can range from 3 to 30 months). Future demand will need to be met by expanding existing capacity. These expansions will require suppliers to raise capital or secure other types of support (federal loans or grants) to invest in facilities, equipment, and workforce. Individual suppliers indicated financial investments could be in the range of $$\$$ $100 million to $$\$$ $1 billion for their own facilities (depending on the type of facility). The biggest risk, according to respondents, related to general uncertainties surrounding the future nuclear industry and whether the potential demand projections will materialize into real demand that is actionable from a business perspective. Businesses do not seem willing to take investments risks without clear orders. If businesses are not able to invest to expand the supply, it will either delay the deployment of advanced nuclear technology, or the supply chain will be met by suppliers outside of the United States. This report only focuses on the domestic supply chain’s ability to meet the various projections stipulated here for the specific assessed components (vessels, heat exchangers, pumps, graphite, and sensors). The report does not cover all reactor designs or all components that may ultimately be needed for any one reactor design. It also does not address whether any specific aspect of the supply chain will be cost competitive in the global market, nor how potential state-backed entities could affect the expansion of a United States-based supply chain. The largest challenges in ramping up capacity among respondents appear to be workforce related. This includes workforce availability, experience, training, and turnover. In addition to facility investment, suppliers will also need to invest heavily in long-term workforce training to meet production goals. This issue is not nuclear-specific, and the expansion of any supply chain will likely face similar challenges. While suppliers evaluated expected normal business demand from other markets outside of nuclear, it is possible that other market segments could expand more than predicted and compete for the same suppliers. One potential market that may compete for the same supplier resources is the United States military, as many of these suppliers support both the commercial nuclear sector as well as the Navy with reactors and components. In summary, suppliers in the United States believe that there is a way to increase production in order to begin meeting the demand which will exist for advanced reactors—as long as appropriate investments can be made in the supply chain in an appropriate timeframe. Based on the capacity projections and lead times, investment will be needed to meet the 5-year and 10-year production targets. Therefore, if significant nuclear deployment is to occur in the 2030s, investment and ramp up of the advanced nuclear supply chain will need to begin in the near future for the United States to successfully deploy these advanced reactors with domestic supply chains.