How China became the king of new nuclear power, and how the U.S. is trying to stage a comeback
Cranes stand at the construction site of the second phase of Changjiang Nuclear Power Plant, invested by state-owned China National Nuclear Corporation (CNNC) and China Huaneng Group, on June 28, 2023 in Changjiang Li Autonomous County, Hainan Province of China.
China News Service | China News Service | Getty Images
China is the breakaway global leader in new nuclear construction.
China has 21 nuclear reactors under construction which will have a capacity for generating more than 21 gigawatts of electricity, according to the International Atomic Energy Agency. That is two and a half times more nuclear reactors under construction than any other country.
India has the second largest nuclear buildout right now, with eight reactors under construction that will be able to generate more than six gigawatts of electricity. Third place Turkey has four nuclear reactors under construction with a presumed capacity of 4.5 gigawatts.
The United States currently has one nuclear reactor under construction, the fourth reactor at the Vogtle power plant in Georgia, which will be able to generate just over 1 gigawatt. (For the sake of comparison, a gigawatt is about enough to power a mid-sized city.)
“China is the de facto world leader in nuclear technology at the moment,” Jacopo Buongiorno, professor of nuclear science and engineering at the Massachusetts Institute of Technology, told CNBC.
China is “the determined and pacing leader in global nuclear ambition at the moment,” agrees Kenneth Luongo, president and founder of the Partnership for Global Security, a nuclear and transnational security and energy policy non-profit. China is “leading, even racing ahead,” Luongo said.
It hasn’t always been that way.
The United States’ existing fleet of nuclear reactors is a testament to its prior dominance.
The United States has 93 nuclear reactors operating with capacity to generate more than 95 gigawatts of electricity, according to the IAEA That is more than any other country by far. Many of those reactors should be viable for some time to come, as nuclear reactors can be licensed to operate for 60 years and in some cases for as long as 80 years, the World Nuclear Association said in a recent report on the nuclear supply chain.
Exelon’s nuclear plant in Byron, Illinois on Sept. 7, 2021.
Chicago Tribune | Tribune News Service | Getty Images
The country with the next most operating nuclear reactors is France, with 56 and a capacity for generating more than 61 gigawatts, according to the IAEA. China comes in third with 55 operating reactors and capacity of over 53 gigawatts.
“It is generally agreed that the U.S. has lost its global dominance in nuclear energy. The trend began in the mid-1980s,” Luongo told CNBC.
China was just getting started as the United States nuclear industry began to take a back seat.
“China began building its first reactor in 1985, just as the U.S. nuclear build-out began a steep decline,” Luongo told CNBC.
How did China become the new nuclear leader?
Power follows demand, so the new nuclear reactors tend to be built where fast-developing economies need power to fuel their growth.
While more than 70 percent of existing nuclear capacity is located in countries that are part of the Organization for Economic Cooperation and Development, nearly 75 percent of the nuclear reactors currently under construction are in non-OECD countries, and half of those are in China, according to the World Nuclear Association’s recent supply chain report.
As China’s economy has grown, so too has its energy output. China’s total energy output reached 7,600 terawatt hours in 2020, a massive increase from 1,280 terawatt hours in 2000, according to the U.S. Energy Information Administration.
“The primary imperative is to meet what has been a staggering growth in demand over the past twenty years,” John F. Kotek, senior vice president of policy development and public affairs of the nuclear advocacy group, the Nuclear Energy Institute, told CNBC. “So they haven’t just been building a lot of nuclear, they’ve been building a lot of everything.”
Cranes stand at the construction site of the second phase of Changjiang Nuclear Power Plant, invested by state-owned China National Nuclear Corporation (CNNC) and China Huaneng Group, on June 28, 2023 in Changjiang Li Autonomous County, Hainan Province of China.
China News Service | China News Service | Getty Images
Currently, nuclear energy accounts for only 5 percent of the total amount of energy produced in the country, while coal still accounts for about two-thirds, according to the International Energy Agency.
But China’s use of coal to meet its surging demand for electricity has caused a secondary problem: dirty air. “With the huge growth in coal use, along with a dramatic increase in private vehicle ownership, has come a dire need for more clean electricity generation,” Kotek told CNBC.
Nuclear energy generation does not release any of the greenhouse gasses that contribute to air pollution and global warming, so China has turned to nuclear as a way to produce large quantities of clean energy fast.
“The Chinese have been pro-nuclear for a long time, but now they seem to have committed to a truly massive scale up to 150 gigawatts in 15 years. And they seem to be on track to meet that goal,” Buongiorno told CNBC.
“This will be the largest expansion of nuclear capacity in history, by far,” Buongiorno said.
China kickstarted its nuclear program by buying reactors from France, the United States and Russia, Luongo told CNBC, and built primary homegrown reactor, the Hualong, with cooperation with France.
One reason for China’s dominance is the government’s strong control over the energy sector, and most of the economy.
“They built a state-supported, financed industry that allows them to build multiple nuclear units at lower cost,” Luongo told CNBC. “They don’t have any secret sauce other than state financing, state supported supply chain, and a state commitment to build the technology.”
China’s focus on building nuclear energy has global climate benefits, but it also poses ge-political challenges.
“China’s prowess and commitment to nuclear is good for the technology, for China’s energy security, grid stability, economy and air pollution, as well as global climate change mitigation,” Buongiorno said. “If they start to export nuclear technology to other countries, the concern is the geo-political-economic dependence on China that such projects will create for those countries. The same logic applies to Russia.”
HUIZHOU, CHINA – FEBRUARY 19: Taipingling Nuclear Power Plant is pictured on February 19, 2023 in Huizhou, Guangdong Province of China. Taipingling Nuclear Power Plant is scheduled to be put into operation in 2025.
Vcg | Visual China Group | Getty Images
U.S. pinning its future on advanced nuclear tech
The United States could catch up and regain some of its former dominance in the nuclear space, experts say.
The United States and Europe have slowly started to build nuclear energy again with middling success.
“These countries restarted building nuclear plants only 10 to 15 years ago. The supply chain and specialized workforce had virtually disappeared, which has resulted in serious cost overruns and schedule delays,” Buongiorno said.
To wit, the two large new nuclear reactors at the Vogtle Plant in Georgia have become infamous for taking much longer than initially expected and blowing through early budget estimates.
Vogtle nuclear reactor 3
Source: Georgia Power
But the U.S. is making moves to regain its previous dominance in the nuclear space.
“The U.S. has reversed its political opposition to nuclear power at home. It now is a rare issue of bipartisan agreement,” Luongo told CNBC.
A recent survey from the Pew Research Center found support for nuclear energy is up among both Democrats and Republicans: 57 percent of Americans report favoring more nuclear reactors to generate electricity, up from 43 percent of Americans who favored nuclear reactors in 2020.
The U.S. is providing subsidies to keep some existing nuclear plants open, selling some large nuclear reactors to eastern Europe. But the country pinning much of its ambition on scaling up the market for small modular and advanced reactor technology and building the associated fuel enrichment capacity.
“The US may catch up if the new technologies being developed here — small modular reactors and microreactors above all — will prove to be technically and commercially successful, which is currently uncertain,” Buongiorno told CNBC.
Smaller nuclear reactors are less expensive because they are smaller, but also because the modular design allows for component parts to be made in a factory and put together on site. That process is faster and cheaper than building each reactor as a boutique one-off.
The NuScale small modular reactor and Westinghouse AP300 are scaled-down light-water reactors, which is the design most conventional nuclear reactors are using, while some other small modular reactor designs are “more exotically fueled and cooled,” Luongo said, like the TerraPower Natruim Reactor or the X-Energy high-temperature gas cooled reactors.
An artist rendering of the new Westinghouse AP300, a small modular reactor.
Artist rendering courtesy Westinghouse
“The U.S. government is pouring billions of dollars into their development and demonstration in the anticipation that they will work, be less expensive than large reactors, and provide the U.S. with a larger market for their export,” Luongo told CNBC. “We’ll see where we are by 2027 when Congress has mandated the demonstration phase. Delays and cost growth in some technologies are already popping up.”
In addition to being smaller and cheaper to build, small modular reactors are well suited for providing heat for industrial processes, Kotek of the Nuclear Energy Institute told CNBC.
Part of the United States’ attempting to re-ignite its nuclear industry is also its desire to be an exporter of nuclear reactor technology.
“The U.S. has decided that it is at a disadvantage in the nuclear export arena and is trying to reposition itself to be a major competitor in the next 15 years. This began with the Trump administration and Biden has amped it up,” Luongo told CNBC. Some of this export business will be large nuclear reactors, like those being sold to Eastern Europe, but “a significant part of this strategy is small modular and advanced reactors,” Luongo said.
Here, again, the U.S. is up against China.
“China rightly views nuclear energy as a strategic industry. They know that nuclear energy exports help build long-term relationships with partner countries. So they have invested heavily in their domestic nuclear energy capabilities and are now seeking to export their reactor designs to other nations,” Kotek told CNBC. China and Russia both offer “very attractive financing” and other kinds of incentives to spread their nuclear industry aboard, Kotek said.
For the United States to win the export business, it must prove it can put steel in the ground in the United States.
“The U.S. is widely recognized to offer world-leading nuclear energy technology, but having great designs on paper is not enough – most other nations want to see that technology demonstrated before they will consider building it in their country,” Kotek told CNBC. “So the U.S. would be wise to incentivize an accelerated build-out of next-generation nuclear energy systems here at home, so that we’re in a position to take proven designs into the global marketplace and take back our position as the world’s top nuclear energy exporter.”
Jockeying for the top spot in the international nuclear industry is going to get more intense as demand for clean energy continues to climb.
“We and our close nuclear energy allies are at what I think is just the start of a fierce competition for supremacy in global nuclear energy export markets,” Kotek said.
More than 1 in 4 cars sold around the world in 2025 are expected to be EVs, according to a new report from the International Energy Agency (IEA). And if EVs stay on track, they could make up over 40% of global car sales by 2030.
The IEA’s Global EV Outlook 2025 report, released today, shows the electric car market is still charging ahead, even with some bumps in the road. Despite economic pressures on the auto sector, EV sales hit a record 17 million in 2024, pushing their global market share past 20% for the first time. That momentum carried into early 2025, with EV sales jumping 35% in Q1 year-over-year. All major markets saw record-breaking Q1 numbers.
China continues to lead the EV race by a wide margin. Nearly half the cars sold there in 2024 were electric. That’s over 11 million EVs – more than the entire world sold just two years earlier. EV adoption is also booming in emerging markets across Asia and Latin America, where sales shot up by more than 60% last year.
In the US, EV sales grew about 10% year over year, with electric vehicles now making up over 10% of all new car sales. Meanwhile, Europe’s EV sales hit a plateau. As government incentives started to taper off, the continent’s market share held steady at around 20%.
“Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally,” said IEA executive director Fatih Birol. “Sales continue to set new records, with major implications for the international auto industry.”
One of the main drivers is lower prices. The average cost of a battery electric car dropped in 2024, thanks to increased competition and falling battery prices. In China, two-thirds of EVs sold last year were cheaper than their gas-powered counterparts, and that’s without subsidies. But in markets like the US and Germany, EVs are still pricier up front: around 30% more in the US, and 20% more in Germany.
Still, EVs win when it comes to operating costs. Even if oil drops to $40 per barrel, it’s still about half as expensive to charge and run an EV at home in Europe than to drive a gas car.
The report also notes the growing role of Chinese EV exports. About 20% of all EVs sold globally last year were imported. China, which produces over 70% of the world’s EVs, exported 1.25 million of them in 2024. These exports have helped push down prices in emerging markets.
And it’s not just electric cars that are on the rise. Electric truck sales jumped 80% globally last year, now making up nearly 2% of the truck market. Most of that growth came from China, where some heavy-duty electric trucks are already cheaper to run than diesel, even if the upfront cost is higher.
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Global research firm Rho Motion has shared its monthly global EV sales report for April, which details continued long-term growth. While global EV sales are down compared to March 2025, the year-over-year tally remains strong, despite uncertainty amid the threat of tariffs and trade wars.
Since merging with Benchmark Mineral Intelligence last June, Rho Motion has become one of the go-to platforms for data surrounding critical mineral and energy transition supply chains. Its monthly updates on market intelligence, including prices and sales data, are must-see research every time they’re published.
This month’s report is no different.
In March 2025, we reported that EV sales worldwide had surged to 1.7 million units, bringing the total to 4.1 million units for Q1. March marked a 40% increase compared to February 2025, and a 29% increase year-over-year.
For April 2025, Global EV sales stumbled slightly compared to the prior month, but held steady in YoY growth.
April global EV sales fall MoM but rise YoY
According to Rho Motion’s latest report, global EV sales for April 2025 were 1.5 million units, bringing the year-to-date tally to 5.6 million NEVs (BEVs, PHEVs, and LDVs). April sales fell 12% compared to March 2025, but matched the previous month’s year-over-year growth at 29%.
Here’s how those 2025 global EV sales breakdown by region, compared to January to April 2024:
- Global: 5.6 million, +29%
- China: 3.3 million, +35%
- Europe: 1.2 million, +25%
- North America: 0.6 million, +5%
- Rest of World: 0.5 million, +37%
As has been the case with every Rho Motion report we cover, China continues to lead the world in EV adoption despite sales dropping 9% month-over-month. Having recently visited the Shanghai Auto Show alongside some OEM visits in Hangzhou, I can see why adoption is moving more quickly. The number of available makes and models at affordable prices is incredible, and the technology you get for your money is downright staggering.
Even amongst ongoing talks of tariffs between global superpowers, including EV powerhouse China, EV sales continue to grow. Per Rho Motion data manager, Charles Lester:
Ongoing tariff negotiations are dominating talk in the electric vehicle industry but quietly, domestic manufacturers in China and the EU continue to perform well and grow market share. The EU is certainly the success story for EV sales in 2025 so far, with emissions targets lighting a fire under the industry to accelerate the switch to electric, they have grown the market by a quarter in the first third of the year. In China, that year on year sales increase is even greater at 35%, spurred on by the vehicle trade in scheme.
Europe, whose adoption numbers stumbled in 2024, has seen steady growth in EV adoption in 2025, landing second to China in sales growth last month (a 25% increase). This increase has been fueled by the increasing number of BEV and PHEV imports to the region from China from brands like BYD, ZEEKR, NIO, and XPeng.
North American sales have only grown by 5% in 2025, with Mexico leading the pack. The rest of the global EV market saw a 37% increase in sales, but those numbers only accounted for about half a million units.
Next time anyone tells you EV adoption is slowing down, you can just send them this data, because it is quite the contrary. Global EV sales continued to grow in April, and that trend should continue through 2025 and beyond.
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Republicans announced a new tax plan today and it’s just about as bad for America as expected, taking money for healthcare, clean air and energy efficiency from American families and sending it to the ultra-wealthy instead.
You might think that this helps one of those ultra-wealthy, Elon Musk, who gave hundreds of millions of dollars to ani-EV candidates to help make this happen. But the main source of his wealth, Tesla, will be specifically harmed by rescission of EV credits – and its competitors largely won’t be.
Now that the republican party has unveiled its job-killing tax proposal, we know a little more about what’s in it.
Originally, it was thought by many that the proposal would completely kill all federal EV credits, with some estimating that the $7,500 credit would go away immediately (personally, I never thought it would be that stupid, but you never know with the republicans).
But it’s clear they want to destroy the credit and make cars more expensive for Americans. After all, Donald Trump, while running for an office he remains Constitutionally barred from holding, asked oil companies for a billion-dollar bribe in exchange for ending the EV credit, a promise he has continued to say he will uphold as he squats in the aforementioned office.
And last week, House Speaker Mike Johnson said that the House is likely to end the credit.
It turns out the details are a little more nuanced than that, and that while the credit is ending, it will sunset a little later than many feared.
It’s likely that the credit will last through the end of this year – which makes sense, since that’s how tax changes often work. Then, at the end of the year, Inflation Reduction Act credits will largely disappear.
However, in the current draft of the bill, some automakers will retain access to some EV credits, for a time. This is due to an exception given for manufacturers who have not sold 200,000 vehicles between 2009 and 2025, a similar cap to the old EV tax credit that was first implemented in 2008, before Congress improved it and removed the cap in the Inflation Reduction Act.
So, smaller manufacturers will continue to have some support, while large manufacturers who have already sold plenty of cars will lose all of their credits.
A number of manufacturers have already reached the 200k EV cap, including Nissan, Ford, Toyota, Hyundai/Kia, GM, and of course, Tesla. Those manufacturers will lose access to credits.
But others who started late or have more niche offerings continue to be under the 200k cap. These include companies like Mercedes, Honda, Lucid, Mazda and Subaru.
Specifically, Rivian has been identified as one of the possible winners here, as the company has not yet sold 200,000 vehicles, though should be crossing that line sometime in the next couple years.
And finally, the real competition for Tesla, gas cars, will not lose anything from the rescission of EV credits. Those cars will continue selling, they’ll just have a $7,500 advantage relative to today – on top of their advantage of each gas car being allowed to choke the world with $20,000+ in unpaid pollution costs, which show up on everyone’s hospital bills and health insurance premiums.
So that brings up an interesting point: when Tesla and its bad CEO Elon Musk threw their support behind all of this, what did they think they would get out of it?
After all, Tesla wrongly said, at the behest of Musk and his tortured logic, that ending EV credits would somehow help it.
We called out that obvious incorrect statement at the time, saying that No, for crying out loud, killing EV subsidies will not help an EV company.
But now it turns out that the situation is even worse for Tesla, because not only does Tesla’s gas competition get to keep the credits, but many electric competitors will get to keep them for some time as well.
And don’t forget that this last quarter, government incentives were the only thing keeping Tesla from losing money. A regulatory environment that is more hostile to Tesla could turn black to red on the balance sheet, along with dropping sales and negative brand perception. Thank the bad CEO you voted to give $55B to for that loss, shareholders.
But the oil companies, another competitor for Tesla, will continue to benefit from roughly $760 billion in subsidy per year in the US alone, in terms of the health and environmental costs they impose on society and do not pay for.
If that subsidy was ended alongside the $7,500 EV credit, then EVs would indeed come out on top. But instead of ending those massive subsidies to fossil fuels, republicans have proposed to increase them, by cutting down enforcement and loosening pollution limits, both through this tax bill and through other agency actions and proposals.
Further, the tax proposal unveiled today sunsets credits for many other products that Tesla sells. There are solar and home energy efficiency credits which Tesla takes advantage of through its Energy division, which sells solar and home battery systems to homeowners. These can be worth tens of thousands of dollars per installation, and those will go away if this proposal goes through.
So in the end, Tesla loses access to credits both on its cars and its Energy division, while its competitors get an even more beneficial regulatory environment to continue polluting. And even its electric competitors get a temporary leg up for the time being.
Meanwhile, Elon Musk gets his part of the $4.5 trillion in tax cuts that go directly to wealthy elites. So at least his pocketbook will look slightly better for a time, even though the company that has been responsible for filling it it will fall further due to less attractive product pricing and through his own association, which has driven protests against the company, embarrassed owners and pushed many customers away.
So, to those of you who wanted us to “trust the plan” – how, exactly, is this beneficial to Tesla, again?
Among the proposed cuts is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now, because these things take time and the system needs to be active before you file for the credit.
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