US Nuclear Fuel Push Bolstered By Centrus Milestone

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Centrus Energy Corp has delivered 900 kilograms of high‐assay low‐enriched uranium to the Department of Energy, marking the completion of its second phase under a demonstration contract and validating the United States' ability to produce this critical fuel domestically. This achievement opens the path for expanded reactor fuel supply amid growing demand for advanced nuclear technologies.

The enrichment took place at Centrus's American Centrifuge Plant in Piketon, Ohio, where a cascade of 16 U. S.-designed centrifuges has been operating since 2023. The plant, which began producing fuel ahead of schedule, notably delivered the nation's first batch of 20 kg of HALEU in late 2023 before meeting the 900 kg threshold by mid‐2025. This facility represents the only NRC‐licensed HALEU source in the U. S. and the first production-capable enrichment plant using American technology in decades.

Simultaneously, the Department of Energy has exercised a one-year extension-Phase III of the contract-funded at approximately $110 million, enabling continued production at the same annual rate through June 2026. Additional extension options remain, potentially supporting operations for nearly a decade more. All production remains under DOE ownership and control.

This fuel milestone arrives against the backdrop of rapid expansion in small modular reactor development across the United States. SMR developers are racing to secure HALEU supplies to support projected growth in power demand, especially from energy-intensive sectors like data centres. DOE forecasts a requirement of roughly 50 metric tons of HALEU per year by 2035, a target far above current capacities.

To supplement HALEU availability, fabrication firms are ramping up production of TRISO fuel at Oak Ridge National Laboratory. Companies such as X‐energy, Standard Nuclear and Orano are advancing pellet‐based fuel technologies under federal support. X‐energy's new TRISO facility-the first in the U. S. in over 50 years-is expected to begin operations by 2027, followed by a second phase by 2029. Amazon is among the private-sector partners backing the initiative.

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Geopolitical pressures have accelerated these developments. A sweeping ban on enriched uranium imports from Russia has compelled the U. S. to build domestic alternatives-with Centrus immediately positioned at the forefront. The company is also pursuing expanded uranium enrichment and centrifuge manufacturing operations in Oak Ridge, Tennessee, supported by federal investment and aimed at displacing reliance on foreign supply chains.

Further international collaboration is emerging. Centrus has recently signed non‐binding memorandums of understanding with South Korean firms Korea Hydro & Nuclear Power and POSCO International to deepen cooperation on civil nuclear technology and fuel. The deals could see increased HALEU exports to South Korea and investment in the Ohio enrichment facility, subject to DOE-backed capacity expansion. Centrus shares have soared amid growing investor enthusiasm in nuclear energy equities.

Centrus itself, led by CEO Daniel B. Poneman, has steadily built its credentials since its transformation from USEC in 2014. The company's American-designed AC100M centrifuges and DOE partnerships have re-established the U. S. as a producer of enriched fuel, a capacity not seen for more than seven decades.

This constellation of developments-domestic HALEU production, contractual extensions, SMR demand growth, strategic alliances, and geopolitical necessity-is reshaping the fuel supply landscape for advanced nuclear technologies in the United States.

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