The U.S. government is taking a major step forward in building its own uranium fuel chain. The Department of Energy (DOE) has awarded contracts totaling $2.7 billion to three companies to significantly expand domestic uranium enrichment over the next ten years – with a clear goal: to reduce dependence on Russian supplies and secure fuel for existing and future reactors in the country.
The focus is on both conventional low-enriched uranium (LEU) and the strategically important High-Assay Low-Enriched Uranium (HALEU), which is needed for many new reactor designs.
Uranium in Focus: Building a U.S. Fuel Chain for Current and Future Reactors
Uranium remains a central raw material for energy supply – especially against the backdrop of the global renaissance of nuclear energy. The U.S. is now clearly focusing on a strategic realignment of its uranium supply.
The DOE awarded approximately $900 million each to:
- American Centrifuge Operating (a subsidiary of Centrus Energy)
- General Matter (a company backed by tech investor Peter Thiel)
- Orano Federal Services
American Centrifuge Operating and General Matter are primarily intended to build capacity for HALEU. This uranium, enriched to 5–20%, is considered a key fuel for many of the planned Small Modular Reactors (SMRs) and other advanced reactor types. Orano Federal Services is simultaneously expected to expand the production of classic low-enriched uranium (LEU) in the U.S., which is used in existing reactors.
All contracts are tied to specific milestones: The companies must be able to reliably provide enrichment services for civilian nuclear power within the next few years – both for the current reactor fleet and for future generations of plants.
HALEU as a Key Technology – and Security Policy Challenge
Particular attention is paid to HALEU, which is currently produced in commercially relevant quantities practically only by Russia. This dependence is increasingly seen as a strategic risk – both in terms of energy economics and geopolitics.
By expanding its own HALEU production, the U.S. wants to create security of supply for new reactor designs, give project developers of SMRs and Advanced Reactors planning security, and support the legally mandated departure from Russian uranium supplies by 2028.
Nevertheless, there is criticism: Since HALEU is more highly enriched than conventional reactor fuel (approx. 5%), experts warn of a potentially higher proliferation risk should the material fall into the wrong hands. Some experts therefore recommend limiting civilian enrichment to 10–12% in order to minimize security risks.
Uranium Market: Competition for Capacity and Technology
In addition to the three main contractors, the DOE awarded an additional $28 million to Global Laser Enrichment (GLE) – a company in which, among others, the Canadian uranium producer Cameco is involved. GLE is working on laser-based enrichment technology, which could enable more efficient use of nuclear fuel in the long term.
Notably, GLE had originally also hoped for a package worth around $900 million. This shows how competitive the new U.S. uranium production and enrichment landscape is – and how strong the competition for future key technologies in the fuel cycle has become.
With the current awards, the U.S. government is supporting a mix of classic centrifuge technology (e.g., Centrus / American Centrifuge Operating), international fuel players with a U.S. focus (Orano), and innovative processes such as laser enrichment (GLE).
For the global uranium market, this means new sources of supply in the medium to long term – but with a clear regional focus on the U.S. and its allies.
Political Dimension: Away from Russia, Towards Strategic Autonomy in Uranium
The DOE’s decision is not only an industrial policy step, but also geopolitically motivated. Russia is currently the only supplier that can deliver HALEU in commercially relevant quantities. At the same time, uranium-related imports from Russia are to be gradually banned by 2028.
The contracts now awarded are intended to reduce dependence on Russian fuel, strengthen the domestic nuclear value chain, and improve planning security for operators and developers of new reactors.
Significance for the Uranium and Nuclear Sector: Demand Impetus and New Projects
U.S. Energy Secretary Chris Wright emphasized in this context that the government is determined to build a “secure domestic fuel supply” for the reactors of today and tomorrow. This aligns uranium policy with the broader strategy of securing critical raw materials – from uranium to rare earths to battery metals – increasingly within its own or allied jurisdictions.
For the uranium sector, the U.S. government’s move is a clear signal. Demand for enriched uranium is likely to increase structurally due to the planned addition of reactors and the planned SMR generation. Long-term, government-backed fuel contracts can stimulate new investments in mining, conversion, and enrichment. Companies with projects in politically stable jurisdictions – especially North America and allied states – could move more into the focus of energy suppliers and politicians in the medium term.
