Rolls-Royce’s special purpose vehicle for nuclear energy has secured a major win after locking down a multi-billion pound deal to build small modular reactors in Sweden.

The FTSE 100 giant’s small modular reactor (SMR) unit, which is co-owned by Czech power company CEZ, designs and delivers factory-built nuclear power plants. Rolls-Royce SMR was selected by Swedish development firm Videberg Kraft to help bulk up the nation’s nuclear capacity.

Shares in the group were up nearly four per cent to 1,353.60 on Monday as it partook in the wider relief rally following the confirmation of a US-Iran peace deal.

The deal will see the company deliver Sweden’s first new nuclear power for over 40 years.

Tufan Erginbilgic, chief executive of Rolls-Royce, said: “Success in Sweden shows the real momentum that Rolls-Royce SMR is generating as it builds upon its crucial first-mover advantage in a market that is growing and attracting significant international interest.”

He added: “This selection is also further evidence that the strategic choices we have made in the transformation of Rolls-Royce are delivering. We are unlocking significant future growth opportunities through our unique nuclear capabilities and are well positioned to benefit from the ongoing nuclear renaissance.”

The Department for Business and Trade said the company’s new tie-up with Videberg would boost jobs in the UK.

Rolls-Royce SMR landed UK taxpayer boost

Rolls-Royce SMR was selected by the UK government as its preferred technology partner with Great British Energy for its SMR programme last year. The UK’s first SMR project is expected to be be built at Wylfa in North Wales and support as much as 3,000 jobs at peak construction, with thousands more across the supply chain.

Business Secretary Peter Kyle touted his trip to Stockholm earlier this year as “paying off” with partnership.

Prime Minister Keir Starmer said: “This deal is a major win for Britain’s economy — showcasing UK engineering on the world stage and securing high‑value jobs, investment and export growth for years to come.”

Rachel Reeves’ flagship wealth fund announced a fresh heap of financing for Rolls-Royce SMR earlier this year following its agreement with Great British Energy.

The National Wealth Fund has revealed a £599m financing package for Rolls-Royce Small Modular Reactors (SMR) in a bid to kick start the delivery on its project.

Small modular reactors are designed to produce up to about one-third the electricity of conventional reactors. Developers argue that small reactors can be constructed more quickly and cost-effectively than larger power reactors, with scalability to meet specific local demands.

Each Rolls-Royce SMR is expected to generate 470 megawatts of low-carbon electricity.