The U.S. Department of Energy has announced it will be investing in restoring and expanding the nation’s uranium enrichment capabilities
A total of $2.7 billion will be awarded over the next ten years to improve domestic enrichment services, reduce reliance on foreign suppliers, and support the growing demand for nuclear energy across the United States.
The funding is designed to secure a reliable supply of nuclear fuel for existing power plants while laying the groundwork for next-generation reactors, which are expected to play a key role in the country’s long-term energy strategy.
Strengthening America’s nuclear fuel supply
Uranium enrichment is an important step in producing nuclear reactor fuel. For decades, the United States has relied heavily on foreign sources for enriched uranium, creating vulnerabilities in energy security and supply chains.
The new funding is intended to reverse this trend by rebuilding domestic capacity for both low-enriched uranium (LEU) and high-assay, low-enriched uranium (HALEU).
LEU is used by today’s commercial nuclear reactors, which provide a significant share of the nation’s carbon-free electricity. HALEU, enriched to higher levels, is essential for many advanced reactor designs now under development. By investing in both fuel types, the Department of Energy is addressing current needs while preparing for future technologies.
Supporting existing and advanced reactors
The United States currently operates 94 commercial nuclear reactors, all of which depend on a steady and secure supply of enriched fuel. The new enrichment capacity will help ensure these reactors can continue operating reliably, supporting grid stability and meeting rising electricity demand.
At the same time, the investment builds a foundation for advanced nuclear reactors that promise improved efficiency, enhanced safety features, and greater flexibility in how and where nuclear power can be deployed. These next-generation systems are expected to play an increasingly important role in clean energy production and industrial applications.
Task orders awarded to U.S companies
As part of this initiative, the Department of Energy has awarded enrichment task orders totaling $2.7 billion to three companies. Each company will receive $900 million to expand or establish domestic enrichment services.
American Centrifuge Operating and General Matters will focus on creating new domestic capacity for HALEU enrichment, a fuel that is currently in limited supply worldwide. Orano Federal Services will expand existing U.S.-based LEU enrichment capabilities, strengthening the supply chain for today’s nuclear fleet.
The awards will be distributed under a milestone-based structure, ensuring progress is measured and funding is tied to performance and delivery.
Encouraging innovation in enrichment technology
In addition to the main awards, the Department of Energy has allocated $28 million to Global Laser Enrichment to continue development of next-generation uranium enrichment technology. This funding follows a competitive solicitation and reflects ongoing efforts to modernise the nuclear fuel cycle.
Advanced enrichment technologies could improve efficiency, reduce costs, and enhance the overall resilience of domestic nuclear fuel production.
Economic and strategic impact
Beyond energy security, the initiative is expected to support American jobs, stimulate industrial growth, and reinforce U.S. leadership in nuclear technology. By rebuilding critical infrastructure at home, the United States aims to reduce geopolitical risks associated with foreign fuel supplies while supporting a long-term transition to reliable, low-carbon energy sources.
