US to Spend US$2.7 Billion on Low-enriched Uranium from Domestic Sources

The US Department of Energy (DOE) said it plans to invest up to US$2.7 billion to strengthen the domestic nuclear fuel supply chain as part of President Joe Biden's Investing in America agenda.

In a request for proposals issued on June 27, the DOE said it is looking to buy low-enriched uranium (LEU) from domestic sources in order to enhance national energy security and create new jobs in the nuclear industry.

The DOE also wants to stimulate the development of uranium enrichment capacity in the US, and believes that this initiative will promote the safe and responsible buildout of facilities designed for this purpose.

The initiative comes after Biden signed the Prohibiting Russian Uranium Imports Act into law on May 13, effectively establishing a ban on the import of LEU from Russia. The ban received is set to take effect 90 days post-enactment.

“DOE is helping jumpstart uranium enrichment capacity here in the United States, which is critical to strengthening our national security and growing our domestic nuclear industry,” Secretary of Energy Jennifer M. Granholm said. She added that the news highlights the US' commitment to remaining a global leader in nuclear energy in the years to come.

Ali Zaidi, assistant to the president and national climate advisor, emphasized the importance of transitioning away from fossil fuels, saying, "Under President Biden’s leadership, we have spurred an unprecedented expansion in clean energy production, which is creating good-paying union jobs and putting us on a path to greater energy security."

The DOE plans to acquire LEU generated by new or expanded domestic enrichment facilities. The intention is to sell this LEU to utilities operating US reactors, supporting clean energy generation and cutting reliance on Russian imports.

Contracts awarded through this initiative will last up to 10 years, with proposals due by August 26, 2024.

The DOE's actions align with its Pathways to Advanced Nuclear Commercial Liftoff report, which supports the advancement of technologies that can help the US achieve net-zero emissions by 2050. Moreover, its Advanced Reactor Demonstration Program is geared at supporting nuclear demonstration and risk reduction projects.

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