## The True Bottleneck of Modular Nuclear Energy: Manufacturing in the United States

The race to build smaller nuclear reactors has just received a massive financial boost. During the last weeks of 2025, investors heavily bet on this technology, channeling $1.1 billion into startups promising to revolutionize the energy sector with smaller, more manageable designs.

However, behind this wave of investor enthusiasm lies a much deeper problem than mere funding figures. While conventional nuclear projects like Vogtle 3 and 4 in Georgia faced delays of eight years and cost overruns of over $20 billion, the new generation of modular nuclear reactors aims to bypass these pitfalls through mass production. The theory is seductive: smaller reactors built with standard manufacturing techniques, where costs should decrease as production volume increases.

But here begins the uncomfortable reality.

## The Knowledge Gap Nobody Wanted to Acknowledge

Milo Werner, general partner at DCVC and manufacturing veteran who led product introductions at Tesla and FitBit, recently posed a troubling question: what are the real obstacles preventing these nuclear reactors from reaching large-scale production?

His answer was straightforward. "I have colleagues in the nuclear supply chain who can list between five and ten materials that we simply do not manufacture in the United States," Werner explained. "We have to import them. Manufacturing expertise has disappeared."

The problem is not just the lack of facilities or funding. After four decades of industrial offshoring, the U.S. has lost something more valuable: specialized human capital. There are not enough people with real experience in building and operating large-scale factories. This affects everything from machine operators to executives and board members who understand the entire ecosystem.

## Can Modularity Solve the Manufacturing Dilemma?

The good news is that some recent studies suggest alternative paths. Startups building prototypes near their technical headquarters are generating valuable data on manufacturing processes, bringing industrial production back into American territory.

The key for these ventures lies in what specialists call "bets on modularity." By starting with small volumes from the beginning, these companies can gather detailed information about their production process. If that data shows consistent improvements, they could reassure investors about long-term viability.

But the benefits of mass production do not appear instantly. Werner estimates that the optimization period could span several years or even a full decade. It’s the same learning curve Tesla experienced with the Model 3, when it discovered that shifting from artisanal manufacturing to profitable large-scale production is a completely different challenge.

## The True Test for Nuclear Reactors

While capital is currently not scarce in the nuclear sector, manufacturing capacity is. Ventures that manage to solve this equation—bringing experienced talent back to production lines and rebuilding industrial infrastructure—will be the ones to truly transform the global energy landscape.

For now, the future of modular nuclear reactors depends less on the billions of dollars pouring in from Silicon Valley and more on how these startups manage to revitalize an industrial muscle that the United States has not seriously exercised in generations.