The [PERSON_NAME] administration is teaming up with British company Core Power to build a fleet of nuclear-powered merchant vessels to challenge [PERSON_NAME]'s dominance of commercial shipbuilding, a top US official said.

[PERSON_NAME], administrator of the US Maritime Administration, told the FT that the US would sign a public-private partnership agreement with Core Power to accelerate nuclear propulsion development for shipping. "We are not going to beat China by being a cheaper version of China," said [PERSON_NAME]. "The way we win is to change the terms of competition to something more favourable to us. We compete on technology."

The agreement aims to fast-track construction of a US-flagged nuclear-powered fleet by designing regulatory frameworks for licensing, insurance, port access and safety. Core Power, headquartered in the US with ties to the Port of Corpus Christi, plans to start building its first nuclear-powered vessel in 2028. The company has raised about $200mn from investors including Japanese firms Mitsui, Mitsubishi and Sumitomo. Nuclear propulsion has been used in military submarines for decades but faces commercial hurdles including high costs and port bans.

The US currently operates the world's largest nuclear-powered fleet through Arctic icebreakers. With shipbuilding decimated by low-cost Chinese competition, nuclear technology offers a path to reindustrialization. The American Bureau of Shipping recently approved a nuclear-propelled vessel design by MIT's Maritime Consortium. Senior US officials will discuss advancing nuclear maritime technology with allies at an IAEA event in Vienna next week.