Rolls-Royce is facing criticism from UK politicians and industry leaders for outsourcing core parts of a multibillion-pound small modular reactor project to South Korea's Doosan Enerbility. The decision has raised questions about the government's commitment to sourcing 70% of the project domestically, with Labour MP Liam Byrne questioning how taxpayer-funded projects can send key contracts overseas.

The controversy emerged shortly after Chancellor Rachel Reeves urged ministries to prioritize domestic companies in government contracts. Gareth Stace of UK Steel called the move "extremely disappointing," arguing it undermines the UK's industrial strategy. Rolls-Royce SMR had previously claimed up to 78% of reactors could be made in the UK, but now declines to specify current UK content levels.

The project involves a £2.6bn investment from Great British Energy and up to £599mn from the National Wealth Fund. Critics worry that Doosan and Škoda will produce reactor pressure vessels while UK suppliers like Sheffield Forgemasters are marginalized, despite being preserved through nationalization in 2021. The situation mirrors the UK's struggles in wind turbine manufacturing, where domestic capability remains limited despite market leadership.

Industry experts argue the UK possesses strong nuclear submarine manufacturing capabilities that could translate to SMRs. However, the current procurement approach risks exporting economic value overseas while relying on lower-value UK components. The government maintains its 70% UK content target for the Wylfa project, but the outsourcing decision highlights tensions between global supply chains and industrial sovereignty goals.