What's Happening?
SGL Carbon and X-energy have announced a binding agreement to double the production capacity of NBG-18, a nuclear-grade graphite material used in X-energy's Xe-100 high-temperature gas-cooled reactors. This expansion is part of a broader effort to strengthen
the supply chain for advanced nuclear deployment. X-energy will invest up to $8 million in milestone-based payments to support new facilities and equipment upgrades at SGL Carbon's site in Chedde, France. The agreement aims to produce graphite billets for up to eight Xe-100 reactors annually. This initiative builds on a 10-year Supplier Framework Agreement established in January 2026, which included an initial three-year award worth over $100 million for X-energy's first commercial projects.
Why It's Important?
The expansion of graphite production is crucial for the advancement of small modular reactors (SMRs), which are seen as a key component in the transition to clean energy. By enhancing the supply chain for critical materials like NBG-18, the partnership between SGL Carbon and X-energy supports the industrial readiness required for commercial-scale SMR projects. This development is significant for the U.S. energy sector, as it aligns with efforts to reduce carbon emissions and increase energy security. The collaboration also highlights the importance of international partnerships in building a resilient nuclear supply chain.
What's Next?
The agreement is expected to double European manufacturing capacity for NBG-18 by 2030, with additional capacity investments being considered to further reduce bottlenecks in initial billet production. The first NBG-18 graphite blocks produced under the agreement have already been shipped to the U.S. for machining into components. As the project progresses, it will be important to monitor the impact on the global supply chain and the potential for further collaborations in the nuclear energy sector.
