X-energy invests $8 million to double nuclear-grade graphite supply

X-energy is spending up to $8 million to double SGL Carbon's output of the nuclear-grade graphite at the core of its Xe-100 reactor.

X-energy's Xe-100 reactor depends on a single safety-critical material — NBG-18 graphite — and the company is investing up to $8 million to double SGL Carbon's production of it, easing a long-lead bottleneck across its 11+ gigawatt pipeline.

"Commercializing new nuclear at scale rests first and foremost on our ability to significantly expand the nuclear supply chain, a challenge that extends beyond any one company, supplier, or nation," J. Clay Sell, chief executive officer of X-energy, said.

The binding agreement covers milestone-based payments to upgrade SGL's Chedde, France site, enabling output of graphite billets for up to eight Xe-100 reactors a year, with SGL also expanding U.S. machining capacity. Full execution would double European NBG-18 manufacturing capacity by 2030, building on a 10-year supplier framework signed in January that included an initial three-year award valued at more than $100 million.

The first billets produced in France have already shipped to SGL's U.S. facilities for machining, following non-nuclear testing at X-energy's Technology Advancement Center in Frederick, Maryland. Initial production supports X-energy's first commercial deployment — a proposed four-unit plant with Dow under the U.S. Department of Energy's Advanced Reactor Demonstration Program.

Why NBG-18 graphite is the bottleneck

NBG-18 is a medium-grain isotropic graphite that serves as both a neutron moderator and a structural component of the Xe-100's pebble-bed core. The material was first developed for South Africa's Pebble Bed Modular Reactor program and later for the DOE's Next Generation Nuclear Plant project, two direct predecessors to the Xe-100. Decades of qualification work have gathered operational data validating its performance under high-temperature operation, but long production lead times make it a critical constraint on reactor deployment.

"By jointly expanding our production capacity for nuclear-grade graphite, we are reinforcing the importance of our partnership and ensuring reliable supply to X-energy," Andreas Klein, chief executive officer of SGL Carbon, said. "This agreement is a strategically important step that strengthens our position in the highly specialized growth market for nuclear-grade graphite."

Supply chain race as AI demand surges

The expansion comes as data center electricity consumption is projected to surge 26 percent in 2026 to 565 terawatt-hours, according to Gartner, pushing technology companies toward next-generation power. X-energy went public this year alongside Solv Energy and Fervo Energy, and has commercial projects underway with Dow, Amazon, and Centrica across grid, industrial, and AI applications.

X-energy shares fell 4.34 percent on the announcement, while SGL Carbon rose 5.42 percent, according to Investing.com data. The company has posted losses every year since its founding, with an accumulated deficit of $1.4 billion, and reported a larger quarterly net loss in June even as revenue rose. The graphite deal addresses a key execution risk — supply chain readiness — but the muted market reaction suggests investors are waiting for milestone delivery against the agreement rather than the announcement itself.

This article is for informational purposes only and does not constitute investment advice.