Investment in Graphite Production
X-energy Inc. and SGL Carbon have reached a binding agreement to significantly increase the production of nuclear-grade graphite, a key material for X-energy's Xe-100 advanced reactor. The agreement includes X-energy's investment of up to $8 million, to be distributed through milestone-based payments. This funding will be used to develop new facilities and upgrade equipment at SGL Carbon's manufacturing site in Chedde, France. The goal is to expand the supply chain for this critical material, supporting X-energy's growing commercial pipeline, which includes plans for over 11 gigawatts of reactor capacity.
As a result of the facility improvements, the site will be able to produce enough medium-grain isotropic graphite (NBG-18) to supply up to eight new Xe-100 reactors per year. This expansion directly tackles a major bottleneck in advanced nuclear deployment, where long-lead manufacturing constraints can slow progress. By improving production rates, the companies aim to accelerate the deployment of the Xe-100 reactor and support the broader adoption of advanced nuclear technology.
Expanding Supply Chain Resilience
In addition to boosting production in France, SGL Carbon will expand its machining operations in the United States. This expansion will focus on converting raw graphite billets into finished graphite blocks, which are essential for the reactor's structural and safety components. Enhancing this step in the supply chain will reduce reliance on single points of failure, making the process more reliable and better aligned with the reactor's high safety requirements.
Once the project is fully implemented, it is anticipated to double Europe's manufacturing capacity for NBG-18 by 2030. The companies are also considering additional investments in other regions to support further expansion of billet production. These strategic moves are intended to meet the growing demand for reactor-grade graphite and to ensure that the supply chain is robust enough to support the increasing number of Xe-100 reactor projects.
This expansion builds on a 10-year supplier framework agreement announced in January 2026, which included an initial three-year contract valued at more than $100 million. That contract was instrumental in supporting X-energy’s first commercial reactor projects. Following successful prototype validation at X-energy’s Technology Advancement Center in Frederick, Maryland, the first NBG-18 billets produced in France have already been shipped to SGL's U.S. facilities for machining.
X-energy's chief executive officer, J. Clay Sell, highlighted the importance of expanding the nuclear supply chain, noting that it is a shared challenge that extends beyond the scope of any one company, supplier, or nation. He emphasized the need to engage additional partners who share the company's vision of creating a strong and resilient nuclear supply chain for the U.S. and its allies. The collaboration with SGL Carbon is a key step toward achieving this goal.
The $8 million investment also reflects a broader industry trend toward securing manufacturing capacity for specialized nuclear materials. As advanced reactor developers shift from demonstration projects to full commercial deployment, the need for components like NBG-18 becomes more urgent. These materials are essential for reactor safety and performance, and their availability is crucial for accelerating reactor construction.
NBG-18 serves a dual function in the Xe-100 reactor, acting as both a neutron moderator and a structural component in the pebble-bed reactor core. This material has been developed over decades of research, including contributions from South Africa's Pebble Bed Modular Reactor program and the U.S. Department of Energy's Next Generation Nuclear Plant initiative. These efforts laid the technical foundation for X-energy's reactor design.
The project includes allocations for follow-on projects as X-energy prepares to scale up its reactor fleet.
SGL Carbon’s chief executive officer, Andreas Klein, expressed confidence that the agreement will strengthen the company's position in the specialized nuclear-grade graphite market. He noted that expanding production not only supports X-energy’s reactor projects but also provides long-term growth opportunities. This strategic partnership is expected to meet the increasing demand for safety-critical graphite components in advanced nuclear applications.
The agreement also reflects the growing importance of supply chain investment in the advanced nuclear sector. As companies like X-energy move closer to commercial deployment, establishing domestic and allied manufacturing capabilities for specialized materials has become a priority. By expanding graphite production in Europe and machining operations in the United States, the partnership aims to reduce supply constraints and improve manufacturing readiness. These efforts are crucial for the successful and timely deployment of next-generation reactors.