The U.S. government seeks to reclaim global leadership in nuclear energy through multiple executive orders promoting nuclear power development. How should this move be viewed? What is the current state of the U.S. nuclear energy industry?

The executive order states that advanced reactors—including Generation III+ designs, Generation IV reactors, and microreactors—hold broad application potential, offering resilient, safe, and reliable electricity for critical defense infrastructure and other vital facilities. However, 'the United States has failed to deploy such technologies at the scale and speed required to meet the nation’s urgent national security needs, while its adversaries are rapidly exporting and deploying them worldwide.' Accordingly, 'the federal government must fully leverage all its authorities to safely and responsibly accelerate the development, demonstration, deployment, and export of advanced U.S. nuclear technologies—thereby enhancing readiness and strengthening technological advantage.' Thus, the executive order explicitly outlines three concrete initiatives. First, deploying advanced reactors to safeguard national security: (i) requiring the Department of Defense to develop a plan to construct an advanced reactor at a domestic military base, with operation commencing within three years; (ii) directing the Department of Energy (DOE) to designate artificial intelligence (AI) data centers located on DOE sites—or operating in coordination with DOE facilities—as critical defense infrastructure, and designating the reactors supplying power to those centers as critical defense electrical infrastructure; and (iii) requiring DOE to collaborate with the private sector to build the first advanced reactor on a DOE site within 30 months, to power AI infrastructure and support other national security objectives. Second, deepening collaboration with the private sector: (i) requiring DOE to supply at least 20 metric tons of high-assay low-enriched uranium (HALEU) to private-sector projects, to meet fuel requirements for reactors powering AI and other critical infrastructure on DOE sites; and (ii) directing DOE and the Department of Defense to support private-sector investment in, and operation of, nuclear fuel cycle, reprocessing, and fuel fabrication facilities on federal lands. Third, advancing U.S. nuclear energy exports: (i) tasking the Department of State to lead diplomatic efforts to conclude at least 20 new intergovernmental agreements for peaceful nuclear cooperation (so-called 'Section 123 Agreements,' which serve as prerequisites for bilateral nuclear cooperation with other countries); and (ii) directing relevant government agencies to jointly formulate financing, fiscal, and technical support strategies—and expedite regulatory approvals—to facilitate exports. Executive Order: 'Revitalizing the Nuclear Industrial Base' This executive order notes: 'It took the United States nearly 40 years to build its current nuclear generating capacity—while another developed country achieved the same in just 10 years. Since 2017, 87% of newly constructed nuclear reactors globally have adopted designs from two other countries, whereas U.S. deployment of advanced reactors continues to shrink. Meanwhile, U.S. nuclear fuel cycle infrastructure has severely deteriorated, with natural uranium supply, uranium conversion, and enrichment services heavily reliant on imports.' To reverse this trend, the order mandates action across three areas. First, strengthening the nuclear fuel cycle system: (i) directing DOE to develop national policy recommendations on spent fuel management and on developing and deploying advanced fuel cycle capabilities; assess policies concerning commercial nuclear fuel recycling and reprocessing; and propose recommendations for effective utilization of nuclear waste materials; (ii) formulating plans to expand uranium conversion and enrichment capacity, and to use surplus plutonium as fuel for advanced reactors; and (iii) directing DOE to seek voluntary agreements with domestic nuclear energy companies to jointly procure enriched uranium and to consult on spent fuel management. Second, providing financial support for nuclear plant construction, restarts, and uprates: (i) advancing capacity expansion of existing nuclear units by 5,000 megawatts, and initiating construction of 10 large-scale reactors by 2030; and (ii) directing DOE and the Department of Defense to jointly assess the feasibility of restarting or converting decommissioned nuclear power plants into military microgrid energy hubs.

What impact will the U.S. nuclear energy policy reforms have on the development of advanced nuclear technologies and nuclear fuels?

Strategic Applications of Nuclear Energy in Critical Sectors In recent years, the rapid advancement of artificial intelligence (AI) technologies has dramatically increased electricity demand from AI data centers. Their immense computational and storage requirements are placing unsustainable pressure on America’s aging grid—power shortages are poised to become the next bottleneck for AI development. According to projections by relevant institutions, U.S. data center electricity demand will surge thirtyfold by 2035: AI facility energy consumption stood at approximately 4 gigawatts in 2024, but is expected to reach 176 gigawatts by 2035—with AI accounting for over 70% of total data center electricity use. Against this backdrop of accelerating electricity demand, nuclear energy is being reintegrated into the core of the U.S. energy mix, prompting major U.S. technology firms to rush into the sector. In 2025 alone, tech giants including Amazon, Meta, and Microsoft are projected to spend over $320 billion on AI technologies and data center construction. Power supply gaps make small and micro-sized small modular reactors (SMRs) an ideal solution. Yet SMR commercialization faces significant hurdles—including high investment risk and unproven economic viability. More critically, industrial-scale deployment of advanced reactors hinges on securing the first five to ten orders, to achieve economies of scale, reduce costs, and enable sustained growth. The 2023 cancellation of NuScale’s SMR demonstration project starkly highlights the severity of these challenges. This new policy deeply links nuclear energy with national security, prioritizing its deployment to power critical users—such as Department of Defense military bases and DOE AI data centers—where economic considerations are not the sole determinant. This linkage creates a crucial opportunity for the practical implementation of small and micro modular reactors. With national funding and project support, the U.S. may achieve a breakthrough in SMR commercialization—meeting national security energy needs while absorbing the risks associated with 'first-of-a-kind' deployments, thereby accelerating the development of the advanced reactor industry. Forceful Advancement of Nuclear Fuel Independence For decades, U.S. nuclear fuel cycle infrastructure has severely deteriorated, with natural uranium supply, uranium conversion, and enrichment services heavily dependent on imports—posing pronounced supply chain security risks. This new policy aims to break foreign dependence through targeted capital infusion and supply chain restructuring. 1. Leapfrog Growth in Domestic Uranium Enrichment Capacity Capacity Expansion: DOE forecasts indicate that domestic annual demand for high-assay low-enriched uranium (HALEU) will rise to 50 metric tons by 2035—and continue growing thereafter. DOE has awarded low-enriched uranium supply contracts to six companies and HALEU supply contracts to four companies. DOE is investing $3.4 billion to bolster domestic uranium enrichment. Urenco’s U.S. subsidiary will increase capacity at its New Mexico plant by 15%; upon commissioning in 2027, the facility will meet one-third of U.S. demand. Centrus Energy has restarted centrifuge production at its Tennessee facility, and its Ohio enrichment plant is projected to restore capacity to 2 million SWU/year by 2026—double its 2023 level. Technological Upgrading: Adoption of the more efficient AC100 centrifuge technology—reducing energy consumption by 40% compared to conventional models and increasing single-machine enrichment efficiency by 25%—will ensure cost-effective capacity expansion. 2. Breakthroughs in Domestic HALEU Production HALEU is the specialized fuel required for advanced reactors currently under development in the United States—and for accident-tolerant fuels. Its scarcity has already delayed advanced reactor demonstration projects. The May 2024 ban on Russian uranium imports has significantly heightened the urgency of securing domestic HALEU supplies.

US seeks faster uranium enrichment expansion to avert supply shortages

3 days ago

The US Department of Energy is urging suppliers to accelerate uranium enrichment capacity amid rising nuclear power demand driven by AI. Government incentives totaling $900 million aim to reduce reliance on Russian fuel and prevent supply shortages.

reuters

2026-09-18

US seeks faster uranium enrichment expansion to avert supply shortages

US seeks faster uranium enrichment expansion to avert supply shortages

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