- Collaborative Investment: TerraPower and ASP Isotopes announced a partnership for TerraPower to fund a HALEU production facility in South Africa, with ASP agreeing to a long-term supply contract to provide all HALEU produced for ten years.
- Exclusivity Clause: The agreement includes a binding exclusivity clause, preventing ASP Isotopes and its U.S. branch, Quantum Leap Energy, from supplying HALEU to other parties, allowing TerraPower time to secure funding.
- Strategic Motivation: This initiative supports TerraPower’s development of the Natrium reactor, which requires metallic HALEU fuel, and addresses concerns over reliance on Russian HALEU supplies.
On October 30, 2024, TerraPower, a U.S.-based nuclear reactor development company, and ASP Isotopes, also a U.S.-based firm specializing in advanced materials, announced a collaborative investment opportunity. ASP Isotopes specializes in laser-based isotope enrichment, a method that may produce high-assay low-enriched uranium (HALEU) more efficiently and economically than traditional gaseous centrifuge technologies. HALEU is a more enriched reactor fuel that improves reactor performance and produces less radioactive waste.
In their news release, ASP Isotopes shared a term sheet outlining plans for TerraPower to fund the construction of a HALEU production facility located in South Africa. In return, ASP Isotopes will agree to a long-term supply contract, guaranteeing that TerraPower purchases all HALEU produced at the South African facility for ten years following its completion.
If both parties move forward as intended, TerraPower will source HALEU through ASP’s U.S.-based subsidiary company, Quantum Leap Energy. The agreement will also feature a binding exclusivity clause, which prevents both ASP Isotopes and Quantum Leap Energy from engaging with other parties regarding HALEU supply from the facility.
Paul Mann, founder and CEO of both ASP Isotopes and Quantum Leap Energy, expressed support for the agreement during his presentation on October 30. He noted that TerraPower’s investment reflects a significant commitment, while ASP Isotopes has agreed to not pursue similar agreements with other small modular reactor (SMR) companies for a defined and undisclosed period, allowing TerraPower time to secure funding.
TerraPower’s drive to commercialize HALEU production from allied nations and domestic sources is driven by the progress of constructing their 345-MW(e) sodium-cooled advanced nuclear reactor, known as “Natrium,” which requires metallic HALEU fuel, as well as growing concerns about dependency on Russia, a prominent HALEU supplier.
