Speaking of the 1st gen reactor and heat exchanger failures, I saw there are some Hazer "key lessons learned" reports on the ARENA website.
The third doc is the most interesting, added last November - the first part on exotic materials.It does seem Hazer were put in a very difficult position. They'd received materials that passed their tests but were still defective on a deeper level.
The report indicates Hazer wanted to phase out exotic materials (which they apparently do with the Hatch reactors), mainly on cost grounds. There's no mention of scaleability being an issue, coming back to your initial point.
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