SK-led consortium eyes trillion-won stake in Westinghouse, expanding beyond SMRs

SK Group and a consortium of South Korean conglomerates are considering a strategic equity investment in US nuclear energy company Westinghouse Electric, with SK alone expected to commit a trillion-won-scale sum, industry sources said Thursday. The move is seen as a bid to expand the group's nuclear ambitions beyond small modular reactors into large-scale nuclear power plants.

Samsung, Hyundai Motor and Doosan are also eyeing the investment to strengthen their foothold in the global nuclear market. However, some industry observers caution that South Korean firms should tread carefully given that they would not secure meaningful decision-making authority within Westinghouse.

According to business circles, SK, Samsung C&T and Doosan Enerbility are reviewing a joint consortium investment in Westinghouse, with SK considering taking the role of lead investor. SK's contribution is estimated to reach the trillion-won range.

South Korea and the United States recently agreed to deploy up to $120 billion of a $200 billion Korea-US investment fund to build eight large nuclear reactors in the United States, and to secure a 5 to 10 percent stake in Westinghouse through a South Korean private-sector consortium. The agreement also includes a provision allowing the consortium to acquire shares at a 10 percent discount to the IPO price if Westinghouse lists.

Industry estimates put Westinghouse's valuation at up to $30 billion at the time of a potential listing. Foreign media reports indicate Westinghouse is pursuing a listing that would value the company at more than $50 billion.

The South Korean government had been exploring an investment structure that would ease the financial burden on Korea Electric Power Corporation and Korea Hydro & Nuclear Power, the entities originally designated to acquire the Westinghouse stake. It was in this context that domestic nuclear and EPC firms, along with SK, signaled their interest in participating.

The interest from South Korean companies stems from the strong growth potential of the US nuclear market. US President Donald Trump signed an executive order last year setting a target to quadruple the country's nuclear capacity from 100 GW in 2024 to 400 GW by 2050 — equivalent to adding roughly 212 reactors, given that a single unit generates approximately 1.4 GW.

If the investment goes through, SK's nuclear business is expected to expand from small modular reactors to large-scale plants. SK and SK Innovation jointly invested $250 million in TerraPower — the US nuclear company chaired by Bill Gates — in 2022, becoming its second-largest shareholder. In August, SK Innovation and TerraPower signed an agreement to pursue global expansion of Natrium, a next-generation non-light-water SMR, and to explore applying a Korea-specific business model.

SK's push into nuclear power is driven by its ambition to complete an AI value chain. Building the AI infrastructure that is seeing surging demand requires not only semiconductors but also a stable power solution. SK has concluded that meeting customer needs calls for a full package spanning both chips and energy.

At the New Icheon Forum in June, SK Group Chairman Chey Tae-won said, "Few companies have a full stack covering the memory chips needed for the AI era, data center infrastructure, and the energy and electrification capabilities to support it," adding, "SK's business portfolio encompasses what is needed to usher in the AI era."

With semiconductor, LNG and SMR capabilities already in place, SK has identified large nuclear power plants as the final piece of its AI value chain. Unlike renewable energy, nuclear power can generate electricity stably regardless of weather conditions, making it an increasingly prominent energy source for AI infrastructure.

Samsung C&T, Hyundai Engineering & Construction and Doosan Enerbility are also hoping the investment will open the door to the US nuclear market. Daewoo Engineering & Construction is also reviewing a stake in Westinghouse. Samsung C&T and Hyundai E&C are targeting EPC contracts, while Doosan Enerbility is seeking to supply key components including reactors and steam generators.

Doosan Enerbility previously demonstrated its technical credentials by supplying equipment for the Barakah nuclear power plant in the UAE, a project won by the South Korean government. It is currently manufacturing components for the Czech Republic's new nuclear plant, a project valued at up to 25 trillion won ($18.7 billion). A successful entry into the US market would further cement Doosan Enerbility's standing in the global nuclear industry.

Whether South Korean firms can ultimately secure a role in US nuclear construction projects remains uncertain. Analysts say a stake well above 10 percent would be needed to exert meaningful influence over Westinghouse's decision-making. Canadian private equity firm Brookfield currently holds 51 percent of Westinghouse, with Canadian uranium miner Cameco holding the remaining 49 percent. The lack of board representation or substantive decision-making rights is seen as a significant obstacle.

Jeong Beom-jin, a nuclear engineering professor at Kyung Hee University, said Toshiba, which acquired Westinghouse in 2006, sold its stake in 2018 after construction delays on US nuclear projects. "The US nuclear market's growth prospects are far better now than they were then, but domestic companies need to approach this carefully, drawing on the lessons of the Toshiba case," he said.