•  The US government plans to invite bids for $3.4 billion in contracts to enhance domestic nuclear fuel production, aiming to reduce reliance on Russian imports.
• Centrus Energy Corp. and other companies, including ConverDyn and Global Laser Enrichment, are expected to compete for the funding, which will support the production of low-enriched uranium.
• The initiative, spurred by President Biden’s ban on Russian uranium imports, also stands to benefit domestic uranium mining companies by favoring Western sources of uranium.

Next month, the US government will invite suppliers to bid on contracts worth up to $3.4 billion to boost domestic production of nuclear reactor fuel. This initiative is part of a larger strategy to reduce dependence on Russian imports, which currently supply about a quarter of the reactor fuel used in the US. A significant portion of this funding, $2.7 billion, is allocated to restart domestic nuclear fuel production by purchasing low-enriched uranium (LEU) directly. This move follows President Joe Biden’s recent ban on enriched uranium imports from Russia.

Historically, the US was a leading producer of enriched uranium, but it has since lost its competitive edge and now relies heavily on imports. Currently, the US has only one commercial enrichment facility, located in New Mexico and operated by Urenco Ltd., a consortium involving British, Dutch, and German interests.

Centrus Energy Corp., based in Bethesda, Maryland, is among the companies expected to compete for the new funding. Although Centrus currently sources most of its uranium from Russia, the company is working to produce its own LEU. It has secured about $900 million in conditional sales commitments and began production at a pilot plant for specialized, highly enriched uranium intended for advanced reactors in October.

Other potential beneficiaries of the funding include ConverDyn, a joint venture between Honeywell International Inc. and General Atomics that provides uranium conversion services, and Global Laser Enrichment, a company jointly owned by Silex Systems LTD and Cameco Corp.

Domestic uranium mining companies could also see significant benefits from this funding. Scott Melbye, president of the Uranium Producers of America, which represents companies like Cameco Corp., Energy Fuels, Inc., Ur-Energy, Inc., and Uranium Energy Corp., noted that the expansion of US enrichment capabilities would support Western uranium sources over Russian ones, enhancing the prospects for domestic producers.