President Javier Milei wants to implement nuclear energy to turn Argentina into a global energy hub and attract investments. With that end in sight, on Friday he announced the “Argentine Nuclear Plan,” an initiative that would include the construction of a small modular reactor (SMR).

SMRs are small nuclear reactors that can be shipped and used to power buildings or other commercial operations. In his speech, however, the president failed to mention that Argentina has already been building one since 2014, a project that started to sputter after the Milei administration slashed its funding, only to finally halt construction in September.

“After decades of decline, nuclear energy will make its triumphant return, and we are not going to be left behind, but rather we intend to be pioneers,” Milei said. 

He added that Argentina has abundant energy reserves, “a privileged people in terms of human capital, inhospitable lands at low temperatures throughout Patagonia, which is a comparative advantage for setting up Artificial Intelligence (AI) servers.”

The project will have the support of the International Atomic Energy Agency (IAEA) and will be headed by lead presidential advisor Demian Reidel. IAEA head Rafael Grossi and Reidel accompanied Milei in the plan’s presentation.

Reidel said that “nuclear energy is once again taking its rightful place” since AI will “demand more and more energy.”

The first step of the project will be the construction of a small modular reactor on the Atucha Nuclear Power Plant site, which aims to facilitate access to energy throughout the country and reduce power outages. 

Since it took office, the government has been restricting the budget for CAREM-25, the first nuclear power reactor designed entirely in Argentina and the first SMR in the world to be officially under construction. Layoffs cemented the halt of the construction process, something that Milei did not mention during his speech.

The second stage of the government’s plan will be developing uranium reserves to cover domestic demand and position the country as an exporter of high-value-added fuel elements. “With this plan, the Argentine Republic is positioning itself as a global leader in the peaceful use of atomic energy while advancing towards its goal of becoming a hub for Artificial Intelligence,” an official communiqué said.

Argentina has three nuclear power plants: Atucha I, Atucha II, and Embalse. According to official data, in July of this year, 9% of the energy consumed in the country was nuclear.