BUENOS AIRES, June 2, 2025 (Reuters) — Argentina signed a memorandum of understanding Wednesday with NuScale Power to study the deployment of up to four small modular reactors at the Atucha nuclear complex, a project that could make Argentina the first country in Latin America to operate next-generation nuclear technology.
The agreement commits both parties to a 24-month feasibility study for 462-megawatt SMR modules that could begin operation by 2032. Each module would cost approximately $900 million.
"Argentina has been a nuclear power for 50 years, but we've been running in place," Milei said at the signing ceremony. "We will be the first in Latin America."
Argentina already operates three nuclear reactors that provide approximately 7% of national electricity. The SMR proposal represents a technological leap that would bypass the cost overruns and construction delays that have plagued traditional large-scale reactor projects worldwide.
Brazil and Chile have expressed interest in purchasing electricity from the proposed reactors if the project proves viable. Brazilian Energy Minister Alexandre Silveira called the proposal "an intriguing option for regional energy security."
Greenpeace Argentina condemned the plan within hours of its announcement, calling it "a dangerous distraction from the renewable energy transition."
The project faces significant hurdles. Argentina's sovereign debt remains in distressed territory, making it difficult to raise $3.6 billion for four reactors without IMF support.
For Argentina's scientific community, the SMR project offers an opportunity to revitalize CNEA, which has seen its budget and staffing decline steadily since the 1990s. The agency currently employs 1,800 researchers, down from 4,200 in 1990.
The NuScale design uses natural circulation cooling and passive safety systems that eliminate the need for backup power generators. The reactors are factory-built and transported to site by truck.
If the feasibility study concludes positively, Argentina would need to secure financing from export credit agencies or multilateral development banks. The United States International Development Finance Corporation has indicated preliminary interest in backing the project as part of its strategy to counter Chinese influence in Latin American energy infrastructure.
The nuclear initiative fits within Milei's broader strategy to position Argentina as a regional energy exporter. In addition to the NuScale agreement, the government has announced plans to expand transmission infrastructure to neighboring countries and is exploring natural gas export options from Vaca Muerta.
Argentina's existing nuclear infrastructure provides a foundation for the SMR program. The Atucha complex currently houses two pressurized heavy water reactors, while a third reactor at Embalse is undergoing refurbishment. CNEA maintains significant technical expertise despite budget constraints, having designed and built research reactors for export to Egypt and Algeria in previous decades.
