US To Invest $2.7B In Domestic Uranium, Cutting Reliance On Russia

The United States is set to invest up to $2.7 billion in domestically-supplied enriched uranium to bolster the supply chain for nuclear reactor fuel and reduce reliance on Russian imports. This initiative follows legislation signed by President Joe Biden in May, which also banned imports of enriched uranium from Russia.

Previously, Russia supplied about 24% of the enriched uranium for U.S. reactors, with significant contributions also coming from Germany (12%) and the UK (11%). This reliance on foreign sources posed a strategic risk, particularly given the current geopolitical climate. To address this, the Department of Energy (DOE) has launched an initiative to increase domestic production, which previously accounted for 27%.

“The DOE is actively working to jumpstart domestic uranium enrichment capacity,” stated US Energy Secretary Jennifer Granholm. “This initiative is crucial for strengthening our national security and fostering growth within the domestic nuclear industry.”

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The DOE intends to award multiple, 10-year contracts to qualified suppliers of enriched uranium. Proposals are due by Aug. 26. Potential sources could encompass entirely new enrichment facilities or projects focused on expanding existing infrastructure. This program is expected to benefit U.S.-based nuclear fuel suppliers like Maryland-based Centrus Energy Corp LEU and Urenco Group – a UK-based consortium with a significant presence in New Mexico.

Developing a robust domestic uranium enrichment capability serves several critical purposes. Primarily, it safeguards a reliable and secure fuel supply for the existing fleet of U.S. nuclear reactors, a vital source of clean energy.

Additionally, it establishes a foundation for future deployments of advanced nuclear technologies, which are essential for achieving the nation’s ambitious goal of net-zero emissions by 2050.

Assistant to the President and National Climate Advisor Ali Zaidi noted, “Today's announcement is exactly the kind of investment we need to further build and protect our nuclear energy supply and deliver the clean, affordable, reliable energy that our communities and industries are demanding.”

The Biden administration views this initiative as a cornerstone for a cleaner energy future, free from dependence on foreign sources, particularly those with a history of geopolitical aggression.

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