Amid rising demand and a ban on Russian imports, Centrus Energy has warned of a potential enriched uranium supply crunch for the US nuclear power sector.
US President Donald Trump’s nuclear expansion push faces a potential fuel supply crunch due to the Ukraine war and a ban on Russian imports, as a major enriched uranium supplier warned of rising demand pressures, according to a report by Financial Times.
Centrus Energy chief executive Amir Vexler told FT that the company is accelerating efforts to expand enrichment capacity at its Ohio facility to address a $2.3 billion backlog in sales. He cautioned that the restart of US nuclear plants and upgrades to boost electricity output will increase pressure on the limited number of western suppliers of enriched uranium, a key component of nuclear fuel.
Vexler said a supply-demand gap already exists for currently operating reactors and warned that plans to build new fleets of large and small reactors in the US would deepen long-term challenges. He added the market is likely to remain strained until significant new capacity becomes operational, which he expects in the next decade.
Enriched uranium is produced by refining mined uranium, converting it into gas and processing it to increase the concentration of the isotope used in nuclear fuel.
Nuclear push faces supply risks
Analysts warn shortages of enrichment services could disrupt US President Donald Trump’s push to expand nuclear energy. Prices for enrichment services have surged 167 percent since Russia’s invasion of Ukraine in February 2022, reaching a record $173 per separative work unit, according to UxC.
Global suppliers dominate market
The global enrichment market is dominated by four major producers: Rosatom, China National Nuclear Corporation, Orano and Urenco. Centrus and Urenco are the only companies licensed to enrich uranium in the US.
Centrus currently sources most of the enriched uranium it supplies to US utilities from Russia. That trade will be banned from 1 January 2028 under sanctions passed by Congress in 2024. The company is developing new enrichment capacity expected to come online in 2029.
Enrichment seen as key bottleneck
Nick Lawson, executive chair of Ocean Wall, said enrichment remains a key bottleneck for expanding nuclear power. While Urenco and Orano are investing in additional capacity, he noted such projects take years and cannot quickly replace the large share of supply historically provided by Russia.
According to World Nuclear Association data, the US has domestic enrichment capacity of 4.3 million separative work units, compared with demand of 15.6 million. There are currently no US-based commercial suppliers of the highly enriched fuel required for next-generation small nuclear reactors.
Reliance on Russia and policy response
Russia supplied about one-fifth of the enriched uranium used by the US reactor fleet in 2024 despite the import ban. The Department of Energy can grant waivers for imports until 1 January 2028 if no alternative sources are available.
Last month, the Trump administration awarded $900 million each to Centrus, Orano and General Matter to strengthen domestic enrichment capacity. The government is also offering energy companies access to weapons-grade plutonium for conversion into nuclear fuel.
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