US Backs Westinghouse with US$17.5 Billion for New Nuclear Reactors

The US Department of Energy has issued a US$17.5 billion conditional loan commitment to finance bulk orders of long-lead components for the construction of 10 new large-scale reactors across the country.

The goal is to place 10 new large reactors with finalized designs under construction by 2030.

Through a centralized purchasing structure, the government aims to suppress component manufacturing costs and expedite individual reactor project timelines by up to three years. The aggregate 11 gigawatt buildout is projected to generate enough baseline electricity to power nearly 10 million American households.

“Just over one year ago, President Trump directed the Energy Department and its agency partners to unleash the next American nuclear renaissance,” US Secretary of Energy Chris Wright said on Tuesday (June 24).

“To accomplish that mission, these conditional loans will play an important role in reviving the supply chain needed for America to once again build large-scale commercial reactors.”

The federal capital will back up to five separate utility projects, with each development site slated to house two Westinghouse AP1000 advanced pressurized water reactors.

To mitigate public capital exposure, each project requires an upfront, combined equity injection of US$1 billion (US$500 million apiece from Westinghouse and its respective utility partner) before any federal loan money can be drawn down.

Procurement for ultra-heavy forged components, which face the longest manufacturing backlogs, will be staggered as each individual partner reaches a final investment decision. Westinghouse has already signed non-binding letters of intent with seven potential utility partners that have identified specific project sites.

Cameco (TSX:CCO,NYSE:CCJ), which acquired Westinghouse in November 2023 alongside Brookfield Renewable Partners (NYSE:BEP), welcomed the credit facility as a vital mechanism to underwrite commercial nuclear expansion.

“We are pleased to see the US government make this additional commitment to expanding nuclear power capacity using the proven AP1000 reactor technology,” CEO Tim Gitzel said in a press release following the announcement.

“When combined with the May 23, 2025 Executive Orders and other US government initiatives, we believe the right incentives are being created to advance the rapid deployment of AP1000 reactors in the US.”

The multibillion-dollar commitment remains conditional.

Separately, Cameco noted that discussions continue regarding an infrastructure partnership between Brookfield Asset Management (TSX:BAM,NYSE:BAM), Cameco and the US Department of Commerce.

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