Centrus Energy Signs MOU with KHNP and POSCO to Expand Enrichment Plant and Supply Higher Volumes of Low-Enriched Uranium

Centrus Energy has signed a Memorandum of Understanding with Korea Hydro & Nuclear Power and POSCO International to attract private capital for its uranium enrichment plant in Piketon, OH. The collaboration aims to expand the enrichment capacity and supply low-enriched uranium to KHNP. The partnership has options to explore additional opportunities, including supply agreements for High-Assay, Low-Enriched Uranium for next-generation reactors. Centrus Energy shares have soared 197.7% this year, while Cameco Corporation has gained 46.5%. The Zacks Consensus Estimate for Centrus Energy's 2025 earnings is pegged at $4.23 per share, indicating a 5.37% year-over-year decline.

Centrus Energy has signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (KHNP) and POSCO International to explore potential investment in its uranium enrichment plant in Piketon, Ohio. The non-binding agreement aims to facilitate additional private sector capital to support the expansion of Centrus' enrichment capacity in Ohio [1].

The MOU, which was signed in the presence of U.S. Secretary of Commerce Howard Lutnick and Korea's Minister of Trade, Industry and Energy Kim Jung-kwan, is part of a broader effort to deepen U.S.-Korea cooperation on civilian nuclear energy. The agreement also includes provisions to increase the supply volume of enriched uranium under a contract signed in February 2025 [2].

Centrus and KHNP have agreed to explore additional opportunities for cooperation, including supply agreements for High-Assay, Low-Enriched Uranium (HALEU) for next-generation reactors. This collaboration is significant as South Korea represents one of the largest potential export markets for U.S. enriched uranium and is leading the development and construction of new reactors around the world [1].

The entire supply commitment, including the expanded volumes, is contingent upon Centrus receiving the necessary federal funding to build the new LEU production capacity. Centrus is competing for funding from the U.S. Department of Energy to expand U.S. enrichment capacity, a crucial step to achieving economies of scale and enabling a U.S.-owned enrichment capacity to compete against foreign, state-owned enterprises [2].

Centrus Energy shares have soared 197.7% this year, while Cameco Corporation has gained 46.5%. The Zacks Consensus Estimate for Centrus Energy's 2025 earnings is pegged at $4.23 per share, indicating a 5.37% year-over-year decline [3].

References:
[1] https://www.marketscreener.com/news/centrus-energy-corp-signs-agreement-with-korea-hydro-nuclear-power-and-posco-international-for-po-ce7c50d8de88f223
[2] https://www.nucnet.org/news/centrus-signs-agreement-to-explore-south-korean-investment-in-ohio-uranium-enrichment-plant-8-2-2025