As global electricity demand surges, driven particularly by the demand from use of AI, nuclear power is becoming increasingly critical. Recently, South Korea and the United States signed a memorandum of understanding (MOU) on nuclear technology exports, marking a significant step in their strategic partnership. This deal is not only a boost to their cooperation but also a response to growing challenges in the international nuclear market, where competition is intensifying, especially due to China and Russia.

The MOU is notable for several reasons. It signals a shift in how South Korea and the U.S. will approach nuclear reactor orders in the global market. Instead of competing against each other, the two nations have decided to join forces, which could potentially unlock lucrative opportunities in nuclear power construction and technology exports. This is particularly timely as South Korea's nuclear energy company, Korea Hydro & Nuclear Power, is vying for a $16 billion nuclear reactor project in the Czech Republic. This collaboration will not only improve the chances of securing this deal, but will also help resolve a dispute involving Westinghouse, a U.S. nuclear power giant, over alleged violations of its intellectual property rights related to the Czech project.

The global nuclear reactor market is dominated by five major players: Russia, France, South Korea, China and the United States. Each of these countries controls a significant portion of the market, but China and Russia have been aggressively expanding their nuclear exports, having emerged as formidable competitors to the U.S. While the U.S. holds original nuclear technology, it has been lagging behind in terms of price competitiveness and manufacturing capabilities compared to China and South Korea. The growing influence of China and Russia in the nuclear market has stoked fears in the U.S., particularly regarding national security. Under former President Donald Trump, the U.S. viewed China's nuclear exports as an imminent security threat. The current Biden administration has shifted focus toward revitalizing the domestic nuclear industry, and it is expected that the incoming Trump administration will pursue similar policies with even greater urgency.

Against this backdrop, the nuclear accord between South Korea and the United States comes at a crucial juncture. It is, in essence, a tactical alliance designed to counterbalance the influence of China and Russia in global nuclear power markets. The U.S.-South Korea collaboration not only strengthens their position in the international arena, but also helps ensure that they remain competitive in a rapidly evolving industry. For South Korea, the partnership offers a chance to solidify its status as a global leader in nuclear power, while the U.S. benefits from access to South Korea's manufacturing prowess, particularly in reactor construction.

The Czech government's response to the deal has been positive, with Industry Minister Lukas Vlcek expressing confidence that the collaboration between the two allies will strengthen their efforts in expanding nuclear power, particularly for the planned new reactors in Dukovany. In Europe, many countries are looking to build new nuclear plants as they seek reliable, low-carbon energy solutions to meet growing demand. Similarly, nations in the Middle East are exploring nuclear power as a viable alternative to fossil fuels. As a result, there is a pressing need for both South Korea and the U.S. to maintain a strong foothold in the global nuclear market.

The nuclear partnership between the two countries also aligns with broader geopolitical and economic interests. With the rise of China's technological capabilities, South Korea finds itself in a unique position to assist the U.S. in maintaining its competitive edge, especially in areas such as nuclear technology and shipbuilding. The U.S. has increasingly looked to South Korea as a key partner, both to counter China's influence and to bolster its own manufacturing sector. Recent moves, such as Hanwha Group's acquisition of a U.S. shipyard in Philadelphia, signal the growing importance of this alliance.

During the first Trump administration, the U.S. tended to focus on pragmatic, "America First" policies when it came to alliances. This approach is likely to continue, with the U.S. leveraging South Korea's technological and manufacturing capabilities to contain China. For South Korea, the partnership offers a chance to enhance its own technological prowess while also distancing itself from China in sensitive sectors like nuclear energy and advanced technology.

The nuclear alliance between South Korea and the United States represents a crucial step in adapting to the changing dynamics of the global energy market. The alliance serves not only as a strategic move to counter China and Russia's growing influence but also as an opportunity for both countries to advance their mutual interests in a rapidly evolving global landscape. The future of nuclear power may depend on how effectively the U.S. and South Korea can harness their combined strengths in this high-stakes arena.