U.S. Energy Secretary Chris Wright stated yesterday at the International Atomic Energy Agency’s annual conference that the United States is “furiously at work” to rebuild its nuclear fuel supply chain and called for a significant increase in strategic uranium reserves.
Data from the IAEA highlight the urgency: U.S. uranium inventories cover only about 14 months of reactor demand, compared with 30 months in the European Union and an extraordinary 12 years in China. If the U.S. steps into the market as a major buyer, it could trigger strong price pressure at a time when supply is already tight. The two largest producers, Kazatomprom and Cameco, have both cut output targets, reducing global primary supply by more than 7%. Meanwhile, the World Nuclear Association has extended its estimate for bringing a new uranium mine online from 8–15 years to 10–20 years, and shortages of inputs like sulfuric acid and a lack of skilled labor are additional headwinds. Together, these factors reinforce a structurally bullish environment for uranium.
The Energy Secretary’s push to build stockpiles also points to a robust demand outlook. Beyond Cameco’s Westinghouse unit announcing plans for 10 new large reactors by 2030, small modular reactor (SMR) projects are multiplying. The Tennessee Valley Authority recently struck an agreement with NuScale and ENTRA1 Energy to develop up to 6 GW of new nuclear capacity across multiple sites—the largest SMR deployment initiative in the U.S. to date.
Uranium supply is only one bottleneck. Enrichment capacity is another, as the U.S. seeks to end reliance on Russia, which still provides about 25% of its enriched uranium. Here, too, progress is evident: Uranium Energy Corp. plans to build a new U.S. refining and conversion facility; Centrus has committed $60 million to restart and expand centrifuge manufacturing in Tennessee, with additional capacity eyed in Ohio; and Urenco is increasing capacity at its New Mexico plant by 15%.
Overall, a domestic nuclear fuel supply chain is beginning to take shape, setting U.S. utilities on a path to materially expand nuclear generation in the years ahead. Globally, momentum is also accelerating: just this week, new agreements between U.K. and U.S. firms were announced to advance deployment of SMRs and advanced reactors in Britain, adding several GW to the international project pipeline.
