NASHVILLE, Tenn. — December 5, 2025 — Tennessee Governor Bill Lee announced that the Tennessee Valley Authority (TVA) has been selected to receive a $400 million grant from the U.S. Department of Energy (DOE) to support the development of the nation’s first small modular reactor (SMR) at the federally approved Clinch River Sitein East Tennessee. The milestone investment strengthens Tennessee’s position as a national leader in next-generation, carbon-free nuclear energy.
Governor Lee praised the federal partnership and emphasized the critical role advanced nuclear technology will play in the nation’s future energy mix.
“Today’s announcement marks a significant milestone for America’s energy dominance and underscores Tennessee’s position as a leader in clean, reliable nuclear energy,” said Gov. Lee.
“I’m grateful for the Trump Administration’s historic investment to strengthen our power grid with the nation’s first small modular reactor, and I appreciate TVA’s continued commitment to innovation.”
State Investment Lays Foundation for SMR Deployment
The Clinch River location is one of the only federally pre-approved, undeveloped nuclear sites in the United States—making it a uniquely qualified home for the country’s first SMR deployment.
In 2025, Governor Lee and the Tennessee General Assembly committed up to $50 million in the state budget to accelerate SMR construction and bolster TVA’s DOE grant application. This investment builds on Tennessee’s multi-year strategy to develop the Southeast’s leading nuclear innovation ecosystem.
Tennessee’s Growing Nuclear Energy Cluster
Since launching the Nuclear Energy Fund in 2023, Governor Lee has invested $70 million to attract cutting-edge nuclear technology companies and strengthen the state’s advanced energy supply chain. These strategic efforts have already delivered major results:
- $7.3 billion in total private-sector investment
- Nearly 2,000 new jobs
- Recruitment of leading nuclear innovators, including:
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- Orano
- Type One
- BWXT Enrichment
- Oklo
- Radiant Industries
- And additional next-generation nuclear companies
These expansions further solidify East Tennessee as a national hub for advanced energy research, nuclear component manufacturing, enrichment technologies, and innovative reactor design.
Statewide Leadership Focused on Advanced Nuclear Strategy
To guide Tennessee’s long-term nuclear energy strategy, the Lee administration created the Tennessee Nuclear Energy Advisory Council under Executive Order 101. The council brings together scientists, industry leaders, academics, and former federal officials to shape policy and accelerate deployment of advanced nuclear technologies across the state.
