Uranium Energy Establishes New Refining Unit to Enhance Nuclear Fuel Security

Uranium Energy has launched a new subsidiary, United States Uranium Refining & Conversion Corp, to explore the possibility of building a modern uranium refining and conversion facility in the U.S. The move aims to boost nuclear fuel security and positioning the company as the only uranium processor in the country. The subsidiary will help to increase the domestic supply of uranium, reduce reliance on foreign imports, and create new job opportunities.

Uranium Energy Corp (NYSE American: UEC) has announced the launch of United States Uranium Refining & Conversion Corp (UR&C), a wholly owned subsidiary, to explore the feasibility of developing a new state-of-the-art American uranium refining and conversion facility. The initiative aims to enhance nuclear fuel security and position UEC as the only vertically integrated U.S. company with uranium mining, processing, refining, and conversion capabilities [1].

The move aligns with U.S. policy and the Defense Production Act (DPA), which prioritizes onshoring the nuclear fuel cycle to reduce reliance on foreign sources of uranium. The proposed facility will address the undersupplied market for uranium hexafluoride (UF₆), the critical feedstock for enrichment that powers nuclear reactors [1].

Spencer Abraham, UEC Chairman and former U.S. Secretary of Energy, emphasized the importance of advancing a vertically integrated supply chain for natural UF₆, contributing to unlocking American enrichment growth and supporting President Trump's program to quadruple domestic nuclear energy capacity [1].

Key highlights of the initiative include:

- Vertical Integration: UEC is the largest U.S. uranium company by estimated resources, licensed production, and processing capacity. UR&C will position UEC as the only American company with a nuclear fuel supply chain capability from U₃O₈ production to refining, conversion, and delivery of natural UF₆ [1].
- Market Timing: The current market conditions and federal government support create a prime opportunity for a U.S. company to develop a new uranium refining and UF₆ conversion plant, addressing the demand for an expansion of domestic UF₆ conversion capabilities [1].
- Facility Size: The proposed facility aims to be the largest UF₆ conversion facility in the United States, with a designed capacity to produce ~10,000 metric tonnes uranium (MtU) per year as UF₆ [1].
- Partnerships: UEC is building on a year of engineering and design work completed with Fluor Corporation, a Fortune 500 engineering, procurement, and construction (EPC) firm, providing a first-mover advantage [1].

The project will move forward in stages, with updates provided as evaluations, partnerships, and government engagements advance. UEC has initiated discussions with the U.S. government, state-level energy authorities, utilities, and financial entities, and will report further updates as these engagements progress [1].

References:

[1] https://www.prnewswire.com/news-releases/uranium-energy-corp-launches-united-states-uranium-refining--conversion-corp-to-advance-american-nuclear-fuel-security-and-energy-dominance-302543368.html