Observations on the Advanced Nuclear Energy Industry: The Dawn of a “Nuclear Power Revival” with Accelerated Construction of Nuclear Power Plants and Fusion Reactors

Category: Industry

Research Institution: Yongxing Securities Co., Ltd.

Researchers: Peng Yi / Zhang Tian

Date: June 1, 2025

Core Insights

Supportive policies for nuclear power are gaining momentum in 2025:

1. On May 23, 2025, U.S. President Trump signed four executive orders related to nuclear energy. According to the Global Times, these orders aim to expedite reactor testing, authorize the Department of Energy and the Department of Defense to construct nuclear reactors on federal land, fully reform the Nuclear Regulatory Commission (NRC), and enhance uranium mining and enrichment capabilities in the U.S. The Guardian reported that these actions are designed to stimulate a “nuclear revival” by building new reactors to meet the electricity demand of data centers for artificial intelligence and other emerging industries.
2. A global nuclear power revival is on the horizon, with China’s nuclear power capacity expected to continue increasing. As cited by Xinhua in the “China Nuclear Energy Development Report (2025),” the world is witnessing a comprehensive revival in nuclear energy. At the current pace of construction, by 2030, China’s operational nuclear power capacity is likely to rank among the world’s top. By 2040, it is anticipated that China’s nuclear power capacity will reach 200 million kilowatts, accounting for approximately 10% of total electricity generation.
3. The State Council has approved new nuclear power projects, continuing to invest in advanced nuclear technologies. As reported on the National Energy Administration’s official website, on April 28, the agency held a press conference to discuss the energy situation for the first quarter and the integration of renewable energy. The Deputy Director of the Comprehensive Department, Zhang Xing, announced that on April 27, a State Council executive meeting approved five nuclear power projects, including the Phase III project in Sanmen, Zhejiang, and the first and second units in Xiapu, Fujian. The total approved and operational nuclear power capacity in China exceeds 120 million kilowatts. Moreover, the National Development and Reform Commission and the National Energy Administration will strongly support research on fourth-generation nuclear technology, small modular reactors, and nuclear fusion.
4. The report from the 20th National Congress highlights the development of nuclear technology. The “China Nuclear Energy Development and Outlook (2023)” document states that the development of nuclear power technology is seen as a significant achievement as China transitions into an innovative nation. The “14th Five-Year Plan” for energy technology innovation actively lays out plans for optimizing third-generation nuclear technology, developing small modular reactors, advancing key technologies in advanced nuclear systems, and promoting sustainable development across the nuclear energy industry chain.

Shandong Province to Build Six Nuclear Power Project Bases with Total Investment Exceeding 500 Billion Yuan

According to RONFA Nuclear Power, in line with national and Shandong provincial strategic plans, six nuclear power project bases are set to be established over the next 10 years in the Shandong Peninsula region, centered around Yantai. These projects will incorporate third-generation nuclear technologies such as AP1000, China’s self-developed Hualong One, and Guohe One, as well as high-temperature gas-cooled reactors, totaling a planned capacity of 40 million kilowatts. The investment in nuclear equipment alone is expected to exceed 500 billion yuan.

China Fusion Energy Company Releases Competitive Procurement Announcement

On May 16, China Fusion Energy Company announced a competitive procurement for major service projects, with the procurement unit being the Southwest Institute of Physics under the China National Nuclear Corporation.

Hefei is Developing a Hub for Controlled Nuclear Fusion Technology

According to Fusion New Energy, the EAST (Experimental Advanced Superconducting Tokamak) is a fully superconducting tokamak that began operation in 2006 and is known as the “artificial sun.” It has achieved significant breakthroughs in long-pulse high-confinement mode, reaching stable plasma operation at 100 million degrees Celsius for 1,066 seconds, setting a new world record. The BEST (Broad Experimental Superconducting Tokamak) project is also underway, aiming to generate energy and demonstrate fusion power generation by 2030. CRAFT (Critical Research Facility for Fusion Tokamak) is another key project that has entered a critical phase and is expected to be completed by the end of 2025.

Hefei BEST Project Progresses Steadily

1. Engineering assembly has commenced: On May 1, the assembly work for the BEST facility, a compact superconducting tokamak, officially began at the Comprehensive Research Facility in Hefei. This assembly is critical for accurately installing the reactor’s core components, with thousands of parts weighing a total of 6,000 tons.
2. Main beam installation completed: On May 7, the successful installation of four 52-meter long, 400-ton main beams marked a key milestone in the BEST project, two months ahead of schedule.
3. Steel structure truss installation finished: On May 17, the completion of the installation of the first section of the steel structure truss for the BEST facility marked a significant breakthrough in its construction, entering a crucial phase.
4. Overall assembly completed: Recent reports revealed that the BEST project has achieved major construction breakthroughs, attracting widespread attention from various sectors and significant media coverage.

China’s HL-3A Device Sets New Experimental Records

As reported by Science and Technology Innovation Board Daily, China National Nuclear Corporation’s Southwest Institute of Physics has set new operational records for the HL-3A fusion device, achieving a million ampere plasma current and ion temperature of 100 million degrees Celsius.

“Spark One” Fusion-Fission Hybrid Reactor Completes Project Requirement Review

According to China Nuclear Technology, the Spark One project, which utilizes high-temperature superconducting magnets, will be located in Nanchang, Jiangxi Province. This project is expected to achieve unprecedented fusion energy gains with a Q value exceeding 30, indicating a significant step forward in fusion technology. The project has successfully passed its requirement reviews and has initiated environmental assessment service procurement.

Investment Recommendations

Given the supportive policies from the Trump administration and the Chinese government, we believe that these developments will lay a strong foundation for the rapid growth of nuclear power. The domestic fusion projects, particularly the Hefei BEST project, are progressing steadily, with significant milestones achieved. We recommend paying attention to companies involved in the nuclear power, controlled fusion, and Small Modular Reactor (SMR) industries, such as Lianchuang Optoelectronics, Guoguang Electric, Yongding Co., Jingda Co., Hezhuang Intelligent, Xue Ren Co., Antai Technology, Ronfa Nuclear Power, Fuhuang Steel Structure, China National Nuclear Corporation, China Nuclear Power, and CGN Mining.

Risk Warnings

The commercialization of new nuclear technologies may progress slower than expected; the construction pace of nuclear power plants may also fall behind schedule; funding for fusion projects could face pressures.