The Department of Energy awarded more than $2.7 billion to uranium enrichment companies to strengthen the domestic supply of reactor fuel and begin commercial production of high assay low enriched uranium.
The awards split across four recipients. American Centrifuge Operating, part of Centrus Energy, and startup General Matter each received $900 million to expand domestic HALEU production. Orano Federal Services received $900 million to increase domestic low enriched uranium output. Global Laser Enrichment received $28 million to continue developing next generation enrichment technology.
Low enriched uranium fuels the current US reactor fleet. HALEU, enriched to a higher level, is required by most advanced reactor and small modular reactor designs now in licensing, and commercial US production capacity for it has been effectively absent.
Energy Secretary Chris Wright framed the awards as an energy security measure aimed at reducing dependence on foreign suppliers, specifically Russia, which holds a dominant position in the global HALEU market.
Project timelines extend well past the award date. General Matter expected to begin construction on a new facility in 2026 with operations starting by 2034. Orano said it was on track to submit an NRC license application in early 2026, with LEU production beginning in 2031 if the schedule holds.
The multi year lag between funding and output is the structural constraint. Advanced reactor designs reaching construction permit stage in 2026 will need fuel before domestic HALEU capacity comes online, which leaves near term supply dependent on DOE inventory and downblending programs.
Source: American Nuclear Society - https://www.ans.org/news/article-7652/doe-awards-27b-for-haleu-and-leu-enrichment/