U.S. Moves to Expand Strategic Uranium Reserves as Nuclear Sector Stocks Rally

On Monday, September 16, U.S. Secretary of Energy Chris Wright announced that the United States is considering a significant increase to its strategic uranium reserve to lessen reliance on Russian enrichment services and reinforce confidence in nuclear power’s long-term prospects. The announcement sent nuclear energy stocks sharply higher, with Oklo up 13%, Nano Nuclear rising 12%, Uranium Energy gaining 9%, and NexGen Energy advancing 9%.

Speaking at the International Atomic Energy Agency conference, Wright noted that while the country has not yet fully eliminated its use of Russian-enriched uranium, it is firmly moving in that direction. He emphasized the need for rapid growth in domestic uranium consumption across both large reactors and small modular reactors, and he underscored that the reserve’s buffer capacity must expand over time to meet growing demand for home-grown uranium and enrichment services.

Currently, Russia supplies about one-quarter of the enriched uranium for 94 U.S. reactors, which generate roughly one-fifth of America’s electricity. An abrupt cutoff of this supply, without alternative sources or expanded inventories, could jeopardize about 5% of the nation’s power output.

The idea of a federal uranium stockpile was first proposed in 2020 during the Trump administration, backed by a $150 million funding request to purchase domestic uranium, of which Congress approved half. The initiative later received support under the Biden administration. In 2022, the Department of Energy contracted with mining firms such as Energy Fuels and Uranium Energy to acquire hundreds of thousands of pounds of uranium, adding these volumes to the strategic reserve.

Data from the International Atomic Energy Agency reveal that U.S. companies hold enough uranium to fuel reactors for about 14 months, compared with roughly two and a half years’ worth of stockpiles maintained by European and Asian peers. Wright stressed that rebuilding a resilient nuclear fuel supply chain is a national priority. In May 2024, President Biden signed legislation requiring utilities to phase out dependence on Russian supplies by 2028, a deadline Russia countered six months later by restricting uranium exports to the United States.

At present, the U.S. operates two commercial enrichment plants: Urenco’s large New Mexico facility serving conventional pressurized water reactors, and Centrus Energy’s Ohio plant, which has begun supplying fuel for advanced reactor designs. A White House executive order issued in May calls for accelerated deployment of these advanced reactors, with the first units expected to enter testing as early as next year.

While nuclear fuel production has traditionally been managed by the government—given its dual-use implications for weapons—Wright highlighted the critical role of private capital in driving industry progress. He pointed to Peter Thiel’s startup General Matter, which focuses on uranium enrichment, as an example of how efficiency, innovation, and speed depend on private investment. Notably, Wright expressed optimism about fusion energy, predicting that commercial nuclear fusion could be achieved within eight years and expressing surprise if it takes longer than fifteen.