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Department of Energy awards 2.7 billion to expand domestic nuclear fuel capacity for next-generation reactors
Tuesday, January 6, 2026 at 01:38 PM
The US Department of Energy awarded $2.7 billion to boost domestic nuclear fuel production. Centrus Energy and General Matter received $900 million each for HALEU development, while Orano was awarded $900 million for LEU. Global Laser Enrichment received an additional $28 million to support supply chain independence from Russian uranium for next-generation reactors.
Context
The Department of Energy recently awarded $2.7 billion to expand domestic nuclear fuel capacity, with Centrus Energy, General Matter, and Orano each securing $900 million. These ten-year contracts prioritize the production of High-Assay Low-Enriched Uranium (HALEU) and Low-Enriched Uranium (LEU) to power existing fleets and next-generation small modular reactors. Additionally, Cameco-linked Global Laser Enrichment received $28 million for advanced laser technology, supporting a strategic shift toward full independence from Russian uranium imports by 2028.
This infrastructure build-out is critical for the AI sector, where power demand is skyrocketing. Hyperscale data centers require massive, uninterrupted energy to fuel advanced compute workloads. By domesticating the fuel supply for advanced reactors, the U.S. aims to provide the stable, carbon-free baseload power necessary to sustain the energy requirements of the global AI race and ensure long-term supply chain resilience.
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