COVERT TOWNSHIP, Mich. (Michigan News Source) — The federal government is putting big money behind Michigan’s nuclear revival, awarding Holtec up to $400 million to develop two small modular reactors at the Palisades Nuclear Plant in Covert Township.

Holtec plans to install two Small Modular Reactor-300 units that would generate about 600 megawatts, nearly matching the output of the original Palisades reactor before it shut down in 2022.

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Energy Secretary Chris Wright said the reactors will provide the “round-the-clock power” needed as electricity demand surges from manufacturing, data centers, and AI growth.

Gov. Gretchen Whitmer called the funding a boost for jobs and “Michigan’s clean-energy leadership.” Most of Michigan’s congressional delegation, except Rep. Rashida Tlaib (D-Detroit), backed Holtec’s proposal earlier this year.

Holtec is also seeking to restart the original Palisades plant with the help of a separate federal loan of up to $1.52 billion, though anti-nuclear groups are challenging that effort in court.

If both moves succeed, Michigan would become an early test case for pairing a revived legacy reactor with next-generation small modular units—a combination federal officials say the grid will increasingly rely on.