DOE Awards $2.7 Billion to Uranium-Enrichment Companies

Written by Eric Funderburk for IIR News (Sugar Land Texas)

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Summary

Furthering the Trump administration's goal of bringing a nuclear renaissance to the U.S., the U.S. Department of Energy (DOE) this week announced more than $2.7 billion in funding to uranium-enrichment companies.

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New Nuclear Fuel Funding

The Trump administration has gone to significant lengths to encourage the development of nuclear power in the U.S.: Regulatory and permitting requirements have been eased, funding has been allocated for the addition of small modular reactors (SMRs) at two sites, and the authorities have given the green light for the installation of a small-capacity advanced reactor in Wyoming. Earlier this week, the administration made another move in support of the sector by awarding more than $2.7 billion to companies involved in the manufacture of the enriched uranium fuels used at nuclear power plants.

A Pressing Need

The U.S. is home to more than 90 nuclear reactors at more than 50 plants throughout the country. However, the country has only a single operating commercial-scale uranium-enrichment plant, the National Enrichment Facility near Eunice, New Mexico, operated Urenco USA (Eunice). Although the addition of centrifuge cascades at the plant to increase fuel production is ongoing, the facility produces roughly 30% of the enriched uranium needed by the U.S. of fleet of nuclear reactors. The rest is imported.

In 2023, Urenco announced that it intended to increase the Eunice plant's production capacity by 15%, starting work on the project in 2024. An initial centrifuge cascade was completed last year, with other additions planned into 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can learn more by viewing the project report.

While Canada, Australia and Kazakhstan are primary sources for raw uranium to the U.S., there's a bit of an elephant in the room in regard to enriched uranium--in particular the high-assay low-enriched uranium (HALEU) used to optimize the performance of the latest advanced reactors. Russia has been a key U.S. supplier. While hard facts and figures regarding enriched uranium imports are a bit sketchy, most media outlets suggest that 20-25% of the enriched uranium used in U.S. reactors has come from Russia in recent years.

A pilot plant to produce HALEU is run by DOE-funding recipient Centrus Energy in Piketon, Ohio. The plant produced an initial 20 kilograms of the material in 2023 and achieved its goal of producing 900 kilograms by the end of June 2025. That fuel has gone to developers of new-generation reactors for testing purposes and doesn't represent enough for use on a large scale.

As an example of what the U.S. is aiming for in regarding HALEU production, the National Defense Authorization Act of 2024 called for the production of 21 million metric tons of HALEU available by the middle of this year, setting accumulative production targets along the way, which included producing 8 million tons of HALEU by December 31, 2025, a target that Centrus' 900 kilograms of production in mid-2025 suggests was not achieved. Subscribers can learn more by viewing the plant profile on the Piketon facility.

Efforts to Prevent Russian Imports

As might be expected, U.S. officials on both sides of the political aisle are not particularly happy about Russia having such a stranglehold on U.S. HALEU imports (as well as other parts of the world). Russia basically produces all of the HALEU on the global market and holds more than 40% of the global capacity for low-enriched uranium (LEU) production, which is what is produced at URENCO's New Mexico site and is more suitable for older reactors.

In May 2024, the U.S. passed the bipartisan Prohibiting Russian Uranium Imports Act, which aims to gradually phase out Russian imports of LEU by 2028, but makes no mention of the increasingly critical HALEU used in newer reactors. In addition, the legislation left significant room for companies to obtain waivers and continue importing Russian fuel, which has allowed Russia's share of enriched-uranium imports to remain high.

HALEU supply is critical for the newest generation of reactors, including SMRs. Trade publication Energy Connects reports that "its benefits for next-generation nuclear reactors are reportedly multifold. These include enabling smaller, more efficient designs with greater energy output, longer fuel cycles (up to 10 years), reduced refueling downtime, and less nuclear waste--ultimately improving performance and supporting advanced technologies."

Recent Funding Allocation

This week's $2.7 billion in funding allocated by the DOE to uranium-enrichment companies aims to shore up both LEU and HALEU supplies. American Centrifuge Operating, a part of Centrus Energy (Bethesda, Maryland), and General Matters, a San Francisco, California-based startup, both received $900 million to develop HALEU production capacity, while Orano Federal Services (Bethesda), part of France's Orano Group (Châtillon), received $900 million to develop additional LEU capacity.

Orano plans to construct a 16,000-square-foot building in Richland, Washington, to develop LEU for nuclear fuel rods, which is expected to be completed by 2028, when a complete ban on Russian LEU imports is supposed to take effect. An even larger second phase of construction is planned to begin following the completion of Phase I. This portion of the project would add another 189,000 square feet to further increase the production of LEU and could be completed by as soon as the second half of 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

Geared indirectly for nuclear fuel production, Centrus Energy is just getting started on an expansion of its centrifuge-manufacturing plant in Oak Ridge, Tennessee. That project is expected to be completed in November, presumably enabling the company to install production cascades at its enrichment facility in Piketon, Ohio, where the 900 kilograms of HALEU production was achieved in June.

Additional Funding

Announced separately was an award to Global Laser Enrichment (Wilmington, North Carolina), an enrichment-focused company partially owned by Canadian uranium miner Cameco (Saskatoon, Saskatchewan). Global Laser was reportedly seeking a $900 million award as well but was awarded only $28 million by the DOE, a sum that probably will not go far in helping develop the company's plans for a grassroot enrichment facility in Kentucky, which comes with a hefty price tag.

Conclusion

While the both the Biden and Trump administrations have taken significant strides in laying the foundations for new nuclear power plants, the fuel used by the plants has not garnered as much legislation or media coverage. With this recent allocation of more than $2.7 billion going toward domestic uranium enrichment, the DOE has taken a step in shoring up domestic LEU fuel production for the existing nuclear fleet as well paving the way for commercial-scale product of the HALEU used in the next generation of reactors that are increasingly part of most recently announced nuclear power projects.

Key Takeaways

• The DOE has provided $900 million to both American Centrifuge Operating, a part of Centrus Energy, and startup General Matters to increase domestic HALEU production.
• Another $900 million was awarded to Orano Federal Services to shore up domestic LEU production.
• The U.S. set a goal of achieving 21 million tons of HALEU production by mid-2026, but as of mid-2025 had achieved only 900 kilograms from Centrus Energy's pilot-scale plant in Ohio.

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