Betting on the nuclear renaissance: How investors are weighing risk amid surging clean energy demand
The Sizewell A and B nuclear power stations, operated by Electricite de France SA (EDF), in Sizewell, UK, on Friday, Jan. 26, 2024. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
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LONDON — Surging power demand has reignited interest in nuclear energy, but vast capital requirements and an uncertain political and regulatory climate raise questions about the sector’s fiscal capacity.
Tech giants are pumping money into nuclear energy investments, looking to power energy-intensive data centers and realize their AI ambitions.
AI and data centers are the “canary in the coal mine,” World Nuclear Association Director General Sama Bilbao y León told CNBC ahead of the conference. “We are finally recognizing that the demand of electricity and energy in general is only going to increase. But the reality is that all sectors of the economy are going to need more electricity.”
In addition to AI, applications range from nuclear energy for the metallurgical industry, which is looking to electrify as fast as possible, to the chemical, maritime and shipping sectors, León said.
The question of how to meet the world’s growing power needs took center stage as chief executives of the world’s biggest uranium and nuclear energy firms, experts and investors gathered for the annual World Nuclear Association (WNA) symposium at the Royal Lancaster London hotel last week.
Opening remarks from Dr Sama Bilbao y León, director general of the World Nuclear Association, at the 2025 conference.
World Nuclear Association
Kicking off discussions at the conference, Leon told attendees in her welcoming speech that the event is a “working summit” looking to move past mere conversation.
Investments in the nuclear value chain through 2025 are projected to increase to $2.2 trillion, according to Morgan Stanley estimates, up from a 2024 forecast of $1.5 trillion. That level of investment raises questions over the role of government, banks and other financial players in providing sufficient fiscal capacity.
Investment challenges
Nuclear energy is said to provide a more reliable, 24/7 energy source compared to renewables, which can be more intermittent. The development of small modular reactors (SMRs) provides a more scalable power solution due to their size. According to the IEA, the payback period of a SMR investment is half the usual 20 to 30-year period for larger scale projects.
But SMRs have yet to reach the commercial stage, and most planned projects won’t come online until 2030. While a significant amount of money is being pledged, there have been no new large-scale nuclear projects in the U.S. in the last 15 years.
“The first positive story with respect to the financial sector with regards to nuclear, is that they are open to financing nuclear,” Mahesh Goenka, founder of market and commercial advisory firm Old Economy, told CNBC on the sidelines of WNA. “That was not the story a few years ago when a lot of banks didn’t want to touch nuclear projects. That has changed. The question now remains, do they have the risk appetite to finance nuclear projects?”
Challenges include over-running budgets, the late delivery of projects due to long construction lead times, the technical complexity of initiatives and difficulties obtaining licenses.
Goenka compared the West to China, where financial institutions are happy to finance nuclear projects because they can be delivered on time and on budget — leading to better margins than on other infrastructure projects. Meanwhile, the West has not built many new reactors in a very long time, so the learning rate is not quite there yet, he said.
Nearly all of the nuclear generating capacity in the U.S. comes from reactors built between 1967 and 1990, with no new constructions until 2013 when work started on the Vogtle units in Georgia. Meanwhile, the last plant to be built in the U.K. was Sizewell B, which started operating in 1995.
Nuclear investments are “inherently political projects,” said Mark Muldowney, managing director of energy, resources and infrastructure at BNP Paribas. He noted that, while clients are much more receptive to the investments, uncertainty over cost and build time remains.
“We are many years away from the situation in which techniques like project finance can be used by themselves to finance large nuclear [projects],” he said during a panel discussion.
“It’s not going to be the contractors, even if they were willing to, and by and large they aren’t, they will be bankrupted by some of the risks that sit with these projects. So it’s either going to be a government, or it’s going to be the electricity consumers of that country, and in some places that could be intermediated by utilities.”
Government backstop still required
Nuclear power plants are among the most capital intensive assets. The U.K., for example, has greenlit the construction of a massive two-reactor nuclear power station on the Suffolk coast that will generate 3.2 gigawatts of electricity — enough, the government says, to provide power for the equivalent of 6 million homes. But costs of the majority government-owned project have jumped to £38 billion, exceeding an initial target of £20 billion.
Other major projects have run into similar issues. The Plant Vogtle in Waynesboro, Georgia, ran several years behind schedule and had a budget that more than doubled during development. The U.K.’s Hinkley Point nuclear power point faced many concerns around security risks during its initial stages, as well as a budget that swelled to an estimated £40 billion.
Trevor Myburgh, senior executive in corporate finance advisory at Eskom, stressed that the private sector cannot be a “silver bullet” and solve the problem of financing nuclear energy.
Public private partnerships are going to be “crucial” in the development of nuclear, particularly in any emerging economy, Myburgh said during a panel discussion on Wednesday.
While some European countries such as Switzerland — which currently has a ban on the construction of any new nuclear plants but has drafted legislation to lift this motion — and Germany remain adverse to nuclear energy, other governments such as those of the U.K., France, and the U.S. have leaned into the energy source.
Earlier this year, U.S. President Donald Trump signed a number of executive orders designed to fast track the development of nuclear reactors and quadruple nuclear generating capacity by 2025.
Such actions from Trump’s administration have put positive nuclear energy policies “on steroids,” said Uranium Royalty Corp CEO Scott Melbye.
“What we’re seeing are really concrete measures being taken by this administration to spur not only the building of small modular reactors, advanced reactors and large reactors, but [also] in the fuel cycle,” Melbye told WNA attendees.
Investor Arfa Karani noted the growing interest from the investor community to find opportunities with startups, particularly those that supply nuclear-adjacent tech.
The U.K. government, in particular has adopted a more “hands-on” approach in helping founders understand how to invest in clean tech, she said.
“The regulation has to figure itself out. It’s no longer a question of, where do we get the capital from? ….because now suddenly it’s become a matter of national security and global power and global dominance,” she told CNBC, adding that commitment Stateside to funding AI and nuclear has meant that “all the insolvable problems suddenly becomes solvable which is very exciting for nuclear.”
Environment
Mercedes unveils GLC electric SUV: a more refined all-electric platform with 440 miles of range
Mercedes-Benz has now fully pulled the wraps off the all-electric GLC at IAA Mobility in Munich. A new next-gen electric powertrain now underpins the most popular model from the German luxury automotive brand.
Can it revive Mercedes’ EV momentum?
Mercedes-Benz all-electric GLC at a glance
- Battery & voltage: 94-kWh pack on an 800-volt system; DC fast-charging from 10–80% in ~24–25 minutes and up to ~160 miles added in a 10-minute stop (WLTP basis).
- Powertrains (launch pair):
- GLC 400 4MATIC: dual-motor AWD, 483 hp / 596 lb-ft, 0–60 mph in 4.4 s.
- GLC 300+: single rear motor RWD, 369 hp / 372 lb-ft, 0–60 mph in 5.9 s.
- Drivetrain detail: a two-speed transmission on the rear axle (11:1 first, 5:1 second) to boost launch, towing, and high-speed efficiency—rare in road EVs today.
- Range: WLTP estimates vary by source; expect ~350–376 miles depending on configuration, with U.S. EPA ratings to come closer to launch.
- Charging network: When it reaches North America, the GLC should align with Mercedes’ plan to ship native NACS ports starting in 2025; current MB EVs already have Supercharger access via an official adapter.
- Towing & utility: Up to 5,291 lbs (with hitch); 20.1 cu-ft cargo (rear seats up) or 61.4 cu-ft (seats folded) plus a 4.5 cu-ft frunk.
- Interior tech: optional 39.1-inch “Hyperscreen” spanning A-pillar to A-pillar with matrix backlighting (1,000+ LEDs) and zone dimming; standard setup still includes large display real estate.
Mercedes-Benz Electric GLC
Unlike the old EQC (a reworked ICE platform), the electric GLC is an EV built from the ground up.
It now features a longer wheelbase, new sheetmetal, and a bespoke interior. The 800-V system supports 330-kW peak DC fast-charging, and the new drive units pair with that two-speed rear e-axle, something most EV automakers don’t opt for, to balance punchy acceleration with efficient cruising.
Optional AIRMATIC air suspension and available rear-axle steering complement the advanced technology offering, providing higher levels of comfort and maneuverability for those willing to pay a premium.
The new electric GLC is equipped with a 94 kWh battery pack, providing up to 713 km (443 miles) of range based on the WLTP cycle.
The EPA range is expected to be closer to 350 miles of range.
Inside, Mercedes, who has long been trying to “out-screen” the segment, is still implementing its 39.1″ Hyperscreen, which uses matrix backlighting with intelligent zone dimming, letting the system brighten critical info while dimming other areas to reduce distraction.
As of late, the German automaker has been making progress with its in-car user interface through deeper Google integration on the latest MBUX/MB.OS stack.
Design-wise, the electric GLC stays recognizable, which is the point — but adds that optional pixel-lit grille and star-signature lighting front and rear as an evolution on existing designs.
Electrek’s take
It does feel like a step-up in Mercedes’ EV game.
Between this and BMW’s new IX3, it’s clear that the German automakers are not ready to let China run away with the electric premium segment.
Tesla is leaving a gap for others to fill, especially in Europe, and legacy automakers need to up their EV game to gain market share, or Chinese automakers will be more than happy to take their place.
The specs of the electric GLC appear to be on point. The price point has yet to be confirmed, but I expect they will try to compete with the new BMW iX3.
They didn’t manage to achieve the same range, but as we often like to highlight, range is not everything and it looks like the GLC will easily be able to travel more than 300 miles on a single charge, which is plenty.
My main eyebrow-raiser is the timeline: late 2026/early 2027 is a long on-ramp for a “now” segment, and competitors won’t stand still.
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Rimac Technology used IAA Mobility in Munich to launch new products, including a new battery pack platform based on solid-state battery cells.
The company, better known for its electric supercars, is trying to position itself as a tier 1 automotive industry supplier with a new product lineup.
Rimac made its name with electric supercars like the Nevara, but the company has also long been developing as an EV supplier with prestigious clients, such as Koenigsegg and Aston Martin.
In 2021, following an investment by Porsche and a merger with Bugatti, Rimac became a more significant supplier and development partner for OEMs seeking high-performance electric powertrains.
At IAA in Munich this week, the Croatian company has unveil its latest products.
Rimac’s latest EV products:
- Solid-state battery platform: integrates ProLogium cells and Mitsubishi Chemical Group materials; pitched as lighter, safer, and more energy-dense than today’s packs.
- E-axle power density: >8 kW/kg and >90 Nm/kg on new “SINTEG 300 & 550” single-motor integrated axles; rotor speeds up to 25,000 rpm. Output envelopes from 150–360 kW and 2,500–6,250 Nm target everything from hot hatches to SUVs.
- High-torque XXL axle: dual-motor EDU 550 enters series production in 2026 for a global OEM; validated >95% peak efficiency and >11,000 Nm axle torque.
- Electronics: domain/zonal ECUs built on NXP S32E2 real-time processors for torque vectoring, HV battery control, body and power distribution, and OTA.
- Scale: two Croatian sites totaling ~95,000 m² anchored by a €200M campus; Rimac says it is building capacity for tens of thousands of units per month. Prior 12-month collaboration list includes BMW Group, CEER Motors, and Porsche.
Rimac goes solid state
Solid-state batteries have been touted as the next-generation battery technology for a while now, and it appears they are finally becoming a reality.
There are bout half a dozen electric automakers who plan to bring the techonology, which could allow for more extended range, faster charging, and longer lasting EVs, into production electric vehicles before the end of the decade.
Rimac wants to help more get on board with its “Next-Gen” pack, which combines ProLogium’s solid-state cells with Mitsubishi Chemical Group materials and innovative housing approaches to enhance energy density and safety while reducing mass.
Alongside that, an “Evo” line based on 46XX Gen2 NMC cells and a thermoplastic composite housing co-developed with Kautex Textron aims at near-term programs, and a “Hybrid” line (high-energy 46XX cell format or power-dense 2170, both cell-to-pack) targets modularity across segments.
Details like exact Wh/kg or C-rates aren’t published yet, but the segmentation signals which tech is ready now versus what’s on the horizon.
Rimac’s new drive units
On top of the new batteries, Rimac also brought a new range of drive units to IAA.
The SINTEG 300 & 550 e-axles are compact, fully integrated units with a patented ultra-light rotor and a novel magnet layout. Rimac’s headline metrics—>8 kW/kg power density, >90 Nm/kg torque density, and up to 25,000 rpm—are the kind of numbers that translate to smaller, lighter drivetrains without giving up punch.
Configurable coaxial or offset variants cover 150–360 kW power range and 2,500–6,250 Nm to fit everything from performance hatchbacks to sedans and SUVs.
For heavier hitters, the dual-motor XXL axle is validated above 11,000 Nm axle torque and >95% peak efficiency, with series production slated for 2026.
Electrek’s Take
It’s interesting to see Rimac throw its hat in the solid state battery ring, but without public energy-density/charge-rate numbers or a customer SOP date, it’s still just roadmap item.
However, I’m growing increasingly confident that we are going to start seeing solid -state batteries in production EV soon and if that’s the case, it makes sense to start with more expensive, performance vehicle.
Rimac operates in this segment. It makes sense for them to help automakers adopt the technology.
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In the latest chapter of New York City’s crackdown on e-bikes, officials are exploring a plan that would help reduce the number of non-certified electric bicycle batteries used or stored in the city.
The proposal, first developed by the FDNY, would tighten regulations further in an effort to ensure that all electric bike batteries used in the city are certified to UL standards. Since a new rule regarding e-bike battery safety was passed in 2023, all e-bikes sold in the city must use batteries that meet UL standards and come with certification, but that doesn’t mean existing e-bikes haven’t already operating with non-certified batteries.
The new rules would enable the NYPD to confiscate such batteries if they’re found to be lacking the proper safety certifications. The batteries would then be transferred to the Sanitation Department for proper disposal.
“Since day one, the Adams administration has made keeping New Yorkers safe our top priority and that includes taking significant steps to crack down on the uncertified e-bike batteries that have sparked multiple deadly fires,” a spokesperson for Mayor Eric Adams to the New York Post.
Electric bikes have been a contentious topic in NYC for the last several years, with the city hosting the largest number of e-bikes anywhere in the US. They’re extremely popular among delivery workers who use them to ferry food and other goods around the city, as well as consumers seeking an alternative form of transportation.
In addition to worries regarding road safety, fire concerns have also plagued the city. While e-bike fires are exceedingly rare considering the large number of e-bikes in use, they have still proven fatal.
Last year, six people were killed in fires attributed to faulty e-bike batteries. So far in 2025, one fatality has been recorded. The last three years of data indicated a continuous downward trend in the number of e-bike battery injuries and deaths since the UL-certification requirement was imposed in NYC in 2023.
By comparison, car-related deaths in the city continue to hover around 10x higher than those related to e-bikes, including dozens of traffic fatalities caused by cars each month. However, those numbers are also trending downwards, part of a larger trend that correlates with the introduction of congestion pricing that has reduced the number of cars navigating parts of NYC.
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