As the United States pursues a new nuclear era, one thing is standing in the way of accelerated deployment – uranium. At present, the U.S. continues to rely heavily on Russia for its enriched uranium, despite having introduced strict sanctions on most other Russian energy following the 2022 invasion of Ukraine.
The development of the United States’ domestic uranium industry is expected to help the country become more self-sufficient, as well as accelerate the rollout of new nuclear capacity.
The Challenge
The United States imports between 20% and 25% of its enriched uranium from Russia, due to the lack of alternative suppliers and little domestic production capacity. Overall, roughly 73% of the United States’ enriched uranium was imported in 2023, showing the heavy reliance of the U.S. on foreign uranium supply chains.
Alongside its other sanctions on Russian energy, the United States issued a ban on low-enriched uranium (LEU) imports from Russia from August 2024 to 2040, under a waiver program until 2028, allowing Washington some time to find alternative suppliers. This is expected to create a scarcity in the fuel supply unless the U.S. can increase its domestic LEU production.
U.S. Uranium
With increased pressure to find alternative uranium suppliers within the next two years, the U.S. is investing heavily in domestic uranium production.
On 5th January, the U.S. Department of Energy (DoE) announced plans to invest $2.7 billion to strengthen domestic enrichment services over the next ten years. The move aims to reduce reliance on foreign suppliers.
In addition to expanding the domestic LEU industry, the funding will contribute towards the development of a high-assay low-enriched uranium (HALEU) industry. Russia is currently the only country that produces HALEU – uranium enriched to between 5% and 20%.
Energy Secretary Chris Wright stated, “President Trump is catalyzing a resurgence in the nation’s nuclear energy sector to strengthen American security and prosperity.” He added, “Today’s awards show that this Administration is committed to restoring a secure domestic nuclear fuel supply chain capable of producing the nuclear fuels needed to power the reactors of today and the advanced reactors of tomorrow.”
In 2025, the DoE signed contracts with six firms for LEU and HALEU enrichment, which allowed them to bid on future work. Three companies were awarded task orders as part of the financing announcement:
- American Centrifuge Operating ($900 million) to create domestic HALEU enrichment capacity
- General Matter ($900 million) to create domestic HALEU enrichment capacity
- Orano Federal Services ($900 million) to expand U.S. domestic LEU enrichment capacity
The DoE also awarded an additional $28 million to Global Laser Enrichment to support the advancement of next-generation uranium enrichment technology for the nuclear fuel cycle.
HALEU Expansion Vital for U.S. Nuclear Renaissance
Most of the advanced reactors currently being developed in the United States are powered by HALEU fuel to achieve smaller designs, longer operating cycles, and increased efficiencies, compared with current technologies, according to the DoE.
At present, commercial nuclear fuel suppliers cannot produce HALEU, mainly due to market uncertainties and infrastructure gaps. However, the DoE estimates that domestic demand for HALEU could reach 50 metric tons per year by 2035, a figure that will keep growing, so long as the U.S. continues to invest in new nuclear capacity.
It is vital, therefore, that the U.S. develops its HALEU production at an accelerated pace to support the deployment of new conventional reactors and small modular reactors (SMRs) in the coming years.
Private Sector Progress
Bill Gates’ nuclear firm, Terrapower, announced in November that it had achieved a milestone in uranium metallization for advanced reactor fuel commercialization in collaboration with Framatome. The two companies produced successful elements of uranium metal, known as pucks, which are a critical component in advancing the fuel supply chain for TerraPower’s Natrium reactor. The metal is produced from depleted uranium.
Lionel Gaiffe, Senior Executive Vice President, Fuel Business Unit at Framatome, stated, “This milestone underscores the critical progress being made in developing a reliable advanced reactor fuel supply chain and in propelling TerraPower’s Natrium technology… Through this strategic collaboration, we are delivering the next generation of nuclear technology that will define the future of clean energy.”
Meanwhile, TerraPower’s President and CEO, Chris Levesque, explained, “TerraPower has been committed to supporting the development of a robust, domestic HALEU fuel supply chain. The successful production of these metallic uranium pucks proves that we can manufacture the metallization component of HALEU fuel here in Washington and support our plans to rapidly deploy Natrium plants across the United States.”
The DoE is working closely with the private sector to accelerate the development of the United States’ enriched uranium production to reduce reliance on foreign suppliers, cut energy ties with Russia, and support the deployment of a new generation of nuclear reactors. Greater funding in this sector is expected to support the acceleration of U.S. nuclear energy development.
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