U.S. Nuclear Fuel Supply Faces Vulnerabilities

Why this is here: Since early 2022, prices for uranium enrichment have nearly tripled, signaling growing strain on the nuclear fuel supply.

John Donelson, chief marketing officer for Centrus Energy, asserts the U.S. faces risks in its nuclear fuel supply chain. The United States currently relies on foreign suppliers for enriched uranium needed to power roughly 20% of its electricity. Russia supplies about a quarter of U.S. uranium needs and holds nearly half of global enrichment capacity, a situation changing with upcoming sanctions set for January 1, 2028.

Uranium enrichment prices have nearly tripled since early 2022 and are expected to increase further. Centrus Energy is investing billions of dollars to expand enrichment capacity in Piketon, Ohio, and to manufacture centrifuges—critical for enrichment—in Oak Ridge, Tennessee, using a fully domestic supply chain. However, most non-Russian enrichment relies on a single European centrifuge manufacturer, creating another potential bottleneck.

Restoring full domestic capacity will require sustained investment and focus on all stages of the fuel supply, from mining to conversion. The company acknowledges that rebuilding the entire system will take time and continued collaboration.