Spherical fuel element is chosen for 10 MW HTR test module to be built in china. It is composed of a fuel zone with the diameter of 50 mm and a fuel-free shell with the thickness of 5 mm. The fuel zone is made of coated fuel particle of TRISO type and the shell is made of the same material as the matrix of the fuel zone. A modified external gelation process was used for producing the fuel kernel of the coated fuel particle, with this method, the fabrication process was improved. Coated fuel particle with pre-irradiation properties comparable to that published in literature has been produced, preliminary irradiation experiment has been done on the coated fuel particle, the results are encouraged. Nuclear pure natural flake graphite has been obtained by chemical purification process. Spherical fuel element with the properties fulfilling the design specification has been fabricated. Normal and special qualification method has been set up or developed for the research and development work.