HD Hyundai Heavy Industries is betting its future on nuclear technology, deepening ties with Bill Gates’ TerraPower as the South Korean shipbuilder scrambles to distinguish itself from surging Chinese competitors who now control 70% of the global vessel market.
The companies announced an expanded partnership this week to scale manufacturing of TerraPower’s Natrium reactor components, building on a 2024 deal where HD Hyundai was selected to develop reactor vessels for TerraPower’s first Wyoming plant. The agreement represents HD Hyundai’s most aggressive push yet into nuclear energy as it seeks technological differentiation against Chinese rivals who have rapidly closed the gap in traditional shipbuilding.
The Korean conglomerate has committed ₩280 billion ($206 million) to develop nuclear-powered container ships, part of a broader strategy that includes a $30 million investment in TerraPower made in 2022. HD Hyundai aims to launch a 15,000-container nuclear cargo vessel by 2030, which would eliminate the need for traditional fuel systems and dramatically reduce carbon emissions.
Yet the strategy carries enormous risks. Nuclear marine technology remains largely theoretical, with significant regulatory hurdles across multiple jurisdictions. International maritime organizations must approve nuclear-powered commercial ships, while safety concerns about radiation containment at sea persist among potential customers and port authorities.
Chinese shipyard Jiangnan already unveiled its own nuclear vessel model in 2023, suggesting HD Hyundai’s nuclear gambit may not provide the sustained competitive advantage it seeks. The Korean firm has watched its market share shrink as Chinese builders now deliver 70% of global commercial vessels compared to Korea’s 16%.
TerraPower’s Natrium reactor produces 345 megawatts using sodium cooling technology, representing what the companies call next-generation nuclear power. However, the technology has yet to receive full regulatory approval, with TerraPower’s construction permit application still pending with the U.S. Nuclear Regulatory Commission.
For HD Hyundai, which generates substantial revenues from traditional shipbuilding within its broader industrial operations, the nuclear pivot represents both potential salvation and significant capital risk as it attempts to outmaneuver Chinese competitors through technological complexity rather than cost leadership.
