The United States plans to increase uranium reserves, and uranium mining stocks soar in response

To cope with the "rapid growth" of nuclear energy, the U.S. Secretary of Energy stated that it will expand its uranium reserves.

On September 15, U.S. Secretary of Energy Chris Wright stated at the International Atomic Energy Agency meeting in Vienna that the United States is planning to expand its strategic uranium reserves to support its anticipated phase of "rapid growth" in nuclear energy. He also emphasized:

The United States is moving towards no longer using Russian enriched uranium.

Wright pointed out that Russia currently supplies about a quarter of the enriched uranium for 94 U.S. nuclear reactors, which provide one-fifth of the country's electricity. Reports indicate that cutting off Russian supplies without alternatives could jeopardize about 5% of electricity supply.

This statement immediately drove a surge in uranium-related stocks. As of Monday's close, Energy Fuels surged over 15%, while Uranium Energy and Cameco Corporation both climbed over 10%.

Rebuilding Domestic Supply Chains to Break Free from Russian Dependence

Breaking free from dependence on Russian nuclear fuel is at the core of the current U.S. energy strategy.

To systematically reduce this risk, former President Biden signed a law in 2024 requiring utility companies to stop using Russian uranium by 2028. In response, Russia subsequently restricted the export of related products.

However, currently, the U.S. uranium enrichment capacity is relatively limited, with only two major facilities.

Among them, the Urenco plant in New Mexico serves traditional reactors, while an energy company in Ohio has recently begun producing higher-enriched fuel for advanced reactors.

In May of this year, the White House issued an order aimed at accelerating the deployment of advanced nuclear technologies such as small modular reactors, with the first models expected to enter testing next year. Wright stated that the U.S. is "fully committed" to rebuilding its nuclear fuel supply chain. He added:

We hope to see rapid growth in uranium consumption by both large reactors and small modular reactors in the U.S.

With the future demand for nuclear power increasing, Wright emphasized:

Correspondingly, the scale of buffer reserves also needs to grow over time. We need a large amount of domestic uranium and enrichment capacity.

Reserve Levels and International Gaps

Although the U.S. is taking action, its current strategic reserve levels still show significant gaps compared to other major nuclear power countries.

According to IAEA data, U.S. companies hold an average of only 14 months of uranium inventory. In contrast, the average inventory in the European Union is 2.5 years, while China's reserves reach as high as 12 years.

The U.S. strategic uranium reserve plan was first proposed in 2020, when $150 million in funding was requested, but Congress only approved half. The Biden administration later expressed support for the plan, and the Department of Energy began procuring from U.S. miners in 2022. The explicit proposal to expand reserves marks an increase in the urgency of this plan At the same time, the U.S. government is actively encouraging private sector investment and international cooperation to accelerate the reconstruction of supply chains.

Wright cited Peter Thiel's General Matter as an example of private investment in his speech, emphasizing:

This is crucial for efficiency, innovation, and the speed of development, and is the way to drive progress.

Weeks ago, Centrus Energy announced it had signed a memorandum of understanding with Korea Hydro & Nuclear Power (KHNP) and POSCO International to explore potential investment in its enrichment facility in Ohio.

U.S. Secretary of Commerce Gina Raimondo and South Korea's Minister of Trade, Industry and Energy Lee Chang-yang jointly attended the signing ceremony, highlighting the deepening partnership between the U.S. and South Korea in the civilian nuclear energy sector and the urgent market demand for non-Russian sourced enriched uranium