June 12 (Reuters) - X-energy Reactor Co LLC, which laid out plans to go public by merging with a blank-check firm last year, lowered its deal value on Monday to $1.8 billion from nearly $2.1 billion.

The company, which develops small modular nuclear reactors and fuel technology for clean energy generation, in December agreed to merge with SPAC Ares Acquisition Corp.

A special purpose acquisition company, or SPAC, is a publicly listed shell company that raises funds with the intention of merging with a private company within two years of floating its shares. The private firm goes public through the merger.

The amended deal establishes "a more attractive entry point for investors," the companies said on Monday.

X-energy updated some costs for its advanced reactor demonstration program following higher costs for construction materials and labor, increasing interest rates and supply chain constraints for equipment.

The change in deal value underscores the hurdles companies face in raising capital and defending higher valuations amid worries of a global economic slowdown. (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shounak Dasgupta)