Slovakia’s populist Prime Minister Robert Fico announced Tuesday that his government has approved an agreement with the United States to construct a new nuclear reactor, marking a major step in the country’s energy expansion plan.

Speaking at an annual nuclear conference in Bratislava, Fico said the multi-billion-euro project will add a reactor with an output exceeding 1,000 megawatts at the existing Jaslovské Bohunice nuclear power plant in western Slovakia. The new unit will be fully owned by the Slovak state, he said.

Fico did not specify when the agreement would be formally signed. However, his government had earlier approved plans for a 1,200-megawatt unit at the same site, operated by the state-dominant utility Slovenské Elektrárne. The total cost of the project is estimated at up to €15 billion (about $17.5 billion).

While Slovakia initially planned to select a builder through an open tender, the government has since shifted to direct negotiations with U.S. company Westinghouse Electric.

Slovakia relies heavily on nuclear energy, generating over 80% of its electricity from two existing nuclear plants. The move aligns with a broader regional trend, as several Central and Eastern European nations ramp up nuclear projects to secure energy independence and reduce carbon emissions.

Neighboring Czech Republic recently signed a contract with South Korea’s KHNP to construct two additional reactors, while Poland has partnered with Westinghouse to build its first-ever nuclear power plant. In Hungary, Russian energy firm Rosatom is set to expand operations with two new reactors.