Revitalizing the U.S. Uranium Industry: Challenges, Opportunities, and StrategicImperatives
- Ralph A. Cantafio
- Jun 5, 2025
- 4 min read
Updated: Jun 18, 2025
The U.S. uranium industry, once a global leader, has experienced significant decline due
to geopolitical shifts, regulatory challenges, and competition from cheaper foreign
sources. With national energy security at stake and increasing demands from sectors like artificial intelligence and clean energy, revitalizing domestic uranium production is both a necessity and an opportunity. This paper explores the industry's decline, recent policy changes, and strategies for restoring America's uranium supply chain.
I. Historical Context of the U.S. Uranium Industry
During the Cold War, the U.S. uranium industry thrived, driven by weapons development
and early commercial nuclear power. By the early 1980s, the U.S. operated over 250
uranium mines and produced more than 40 million pounds of uranium annually.
However, post-Cold War dynamics, including the influx of cheaper foreign uranium and
reduced domestic demand, led to a significant decline in production. By 2022, U.S.
uranium output had fallen to less than 1% of global production.
II. Strategic Necessity: National Security and Energy Independence
In response to geopolitical tensions and energy security concerns, the U.S. government
has taken steps to reduce reliance on foreign uranium sources. The Prohibiting Russian
Uranium Imports Act, signed into law in May 2024, bans imports of low-enriched
uranium from Russia, with waivers permitted until 2028. Additionally, executive orders
signed in May 2025 aim to rejuvenate the U.S. nuclear industry by expediting reactor
licensing, promoting nuclear projects on federal lands, and enhancing domestic uranium mining and enrichment efforts.
III. Technological Imperatives: HALEU and Advanced Reactors
The emergence of Small Modular Reactors (SMRs) and next-generation designs requires
High-Assay Low-Enriched Uranium (HALEU), a fuel the U.S. scarcely produces. Currently, Centrus Energy is the only U.S. company licensed to produce HALEU, and in 2024, it produced only 900 kilograms—far below the projected 50 metric tons needed annually by 2035. This shortfall threatens both climate goals and grid reliability, especially as sectors like artificial intelligence drive exponential increases in electricity
demand.
IV. U.S. Uranium Reserves: An Underutilized Asset
Despite the decline in production, the U.S. possesses substantial uranium reserves. According to the U.S. Energy Information Administration (EIA), as of 2008, the U.S. had
an estimated 1,227 million pounds of uranium oxide (U₃O₈) recoverable at costs up to
$100 per pound. At costs up to $50 per pound, estimated reserves were 539 million
pounds. Wyoming led the nation in total uranium reserves, followed by New Mexico.
Together, these two states accounted for about two-thirds of the estimated reserves
available at up to $100 per pound. The majority of these reserves are amenable to in-situ leaching (ISL), the dominant mining method in the U.S. today.
V. Market and Investment Outlook
Recent policy shifts have positively impacted nuclear-related stocks. Centrus Energy
stock experienced a 20% surge following the executive orders, reflecting investor
optimism about the company's role in the domestic nuclear fuel supply chain. However,
experts caution that rebuilding a robust domestic uranium supply chain will require
significant investment and time. The U.S. currently produces only a fraction of the
uranium needed for its reactors, underscoring the importance of sustained policy support and public-private partnerships to achieve energy independence.
VIII. Key U.S. Uranium Industry Players Beyond Centrus
These addition companies are also vital to strengthening the U.S. uranium supply chain,
particularly as the nation attempts to scale up domestic production, reduce foreign
dependence, and support advanced nuclear fuel development.
UEC (Uranium Energy Corp) – Headquartered in Corpus Christi, Texas, UEC is a growing domestic producer with ISR operations in Texas and a substantial project pipeline in Wyoming. UEC recently acquired Uranium One’s U.S. assets, significantly expanding its production capacity.
Cameco Corporation (U.S. Operations) – Although a Canadian company, Cameco
has significant operations in the U.S., including the Smith Ranch-Highland ISR
facility in Wyoming, one of the largest ISR sites in North America. Cameco is
also a key player in global uranium supply chains.
Ur-Energy Inc. – Based in Littleton, Colorado, Ur-Energy operates the Lost Creek
in-situ recovery (ISR) uranium facility in Wyoming. It is one of the most cost-
efficient ISR operations in the U.S. and holds multiple exploration and
development-stage properties.
Energy Fuels Inc. – Headquartered in Lakewood, Colorado, Energy Fuels is the
largest producer of uranium in the United States. The company operates the White
Mesa Mill in Utah—the only conventional uranium mill currently operating in the
country. Energy Fuels also produces vanadium and is entering the rare earth
element (REE) processing market.
VI. Policy Recommendations
1. Establish a Federal Fuel Bank: Create a strategic uranium reserve to stabilize domestic
markets.
2. Implement Tax Credits for HALEU Production: Incentivize production through tax
credits modeled after those for solar and wind energy.
3. Streamline Permitting Processes: Simplify EPA and NRC approval procedures for
mines and reactors to accelerate development.
4. Enforce Trade Measures: Close loopholes in uranium imports via intermediary nations
to protect domestic producers.
While Centrus Energy plays a central role in uranium enrichment and HALEU
production, several other American corporations contribute significantly to the domestic
uranium industry through mining, processing, and project development:
Revitalizing the U.S. uranium industry is imperative for national security, energy
resilience, and technological advancement. With aligned political will, investor
confidence, and industrial coordination, America can reassert leadership in the nuclear
sector, meeting the demands of the AI era and a carbon-constrained world.
References
1. U.S. Energy Information Administration. U.S. Uranium Reserves Estimates." July
2. U.S. Energy Information Administration. Domestic Uranium Production Report -
Annual." May 2023. https://www.eia.gov/uranium/production/annual/
3. U.S. Energy Information Administration. Where Our Uranium Comes From.& August
4. U.S. Congress. Prohibiting Russian Uranium Imports Act.&; Public Law No: 118-42.
May 2024. https://www.congress.gov
5. Executive Order No. 14092, Rebuilding American Nuclear Energy Supply Chains."
May 23, 2025. https://www.federalregister.gov
6. Associated Press. &Centrus Energy Expands Production of HALEU Nuclear Fuel in
Tennessee." May 2025. https://apnews.com/article/centrus-haleu-uranium-tennessee-
84a5a4ebea537f3c07d70124e80e0f0b
7. MarketWatch. &Trump and Meta’s Nuclear Deals Address the AI-Fueled Energy
Crisis.& June 2025. https://www.marketwatch.com/story/trump-and-metas-nuclear-deals-
address-the-ai-fueled-energy-crisis-but-can-u-s-uranium-supply-meet-demand-52a22455
8. Investors Business Daily. &Centrus, Constellation Surge on Trump Nuclear Orders."
constellation-energy-buy-signal-trump-executive-order-stock-market/
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