India Nears Long-Term Uranium Deal With Uzbekistan

India and Uzbekistan upgraded bilateral relations to a Comprehensive Strategic Partnership during Prime Minister Narendra Modi’s state visit to Tashkent, setting a US$5 billion trade target for 2030 and advancing negotiations for a new long-term uranium supply agreement.

The pending deal would extend an existing 2019 agreement under which Uzbekistan committed to delivering 1,100 metric tons of natural uranium concentrate to India through 2026.

Parliamentary records from March 2025 show India had received 600 metric tons under that contract.

India uses imported uranium to fuel civilian nuclear power reactors operating under International Atomic Energy Agency (IAEA) safeguards. The country plans to scale its total nuclear generating capacity to 100 gigawatts by 2047.

Beyond energy security, Uzbek President Shavkat Mirziyoyev noted that bilateral trade rose 33 percent last year to US$1.3 billion. To reach the US$5 billion target by 2030, the two governments plan to form a working group tasked with eliminating non-tariff barriers and reviewing next steps following a feasibility study on an Uzbekistan-India Preferential Trade Agreement.

Both governments also signed a memorandum on mining and geological resources to support cooperation on critical minerals, alongside commitments covering defense manufacturing, multimodal transport routes, education, and tourism.

“A stronger India-Uzbekistan partnership will be a powerful force for peace, progress and prosperity in Central Asia,” Modi said after the talks.

The Tashkent summit continues India’s ongoing strategy to lock up long-term nuclear fuel and critical mineral supplies from international partners.

In July, Australia and India finalized a long-delayed administrative arrangement permitting Australian uranium exports under strict IAEA safeguards. Australia holds roughly 28 percent of known global uranium deposits.

"Australia's natural resources are vital for other countries' energy security and stability, and we look forward to becoming a reliable, trusted supplier of uranium to India," Australian Prime Minister Anthony Albanese said during the announcement.

The Australian deal followed a nine-year supply agreement concluded in March between India’s Department of Atomic Energy and Canadian producer Cameco (TSX:CCO,NYSE:CCJ).

Valued at an estimated US$2.6 billion under market-related pricing terms, the contract obligates Cameco to supply nearly 22 million pounds of uranium ore concentrate between 2027 and 2035 from its operations in northern Saskatchewan.

Alongside its nuclear fuel acquisitions, New Delhi signed a memorandum of understanding with Brazil earlier this year to deepen cooperation on rare earths and other critical minerals.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.