Centrus Energy: The Critical Link in Small Modular Reactors' Global Expansion

The global energy transition is entering a pivotal phase, with small modular reactors (SMRs) emerging as a cornerstone of decarbonization and energy security strategies. At the heart of this shift is Centrus Energy (CCJ), a U.S. leader in the nuclear fuel supply chain uniquely positioned to capitalize on SMR growth. Its strategic partnerships, technological advancements in High-Assay Low-Enriched Uranium (HALEU), and geopolitical tailwinds make it a compelling investment opportunity for those seeking exposure to the nuclear renaissance.

The SMR Boom: A Confluence of Demand Drivers

SMRs are no longer niche projects but a scalable solution to two existential challenges: reducing carbon emissions and securing energy independence. Governments and utilities worldwide are prioritizing SMRs for their flexibility, safety, and ability to integrate with renewable grids. The U.S. Inflation Reduction Act (IRA) has allocated $3.4 billion for advanced nuclear projects, while the EU's Green Deal and Asia's energy security push are accelerating demand. By 2035, the global SMR market is projected to exceed $100 billion annually, with fuel supply chains like Centrus's set to capture significant value.

Centrus' Strategic Anchors: Partnerships and Production

Centrus is leveraging its HALEU expertise—a critical fuel for advanced reactors—to build a fortress of partnerships:

1. KHNP Contract (South Korea): In February 2025, Centrus secured a 10-year enriched uranium supply deal with Korea Hydro & Nuclear Power (KHNP), its first such agreement in over a decade. This contract, contingent on Centrus expanding its Ohio LEU production, marks a strategic win for U.S. energy security and signals a shift in South Korea's reliance on Russian and European fuel sources.

2. DOE Contracts: Backed by $3.4 billion in federal funding, Centrus has already delivered 20+ kg of HALEU ahead of schedule and is now scaling to 900 kg/year under Phase Two of its DOE contract. Full production capacity of 6,000 kg/year—critical for meeting 2035 demand—requires $3.4 billion in financing and regulatory approvals.

3. TerraPower Collaboration: Partnering with TerraPower on Wyoming's Natrium reactor ensures Centrus's role in next-gen reactors, while its uranium mines in the state provide a domestic supply chain shielded from geopolitical risks.

4. OPG SMR Fuel Supply: Selected by Ontario Power Generation for its Darlington project, Centrus is deepening ties with Canada's SMR ambitions, reinforcing North America's energy self-sufficiency.

The Investment Case: Timing and Catalysts

The urgency to act is underscored by three key catalysts:

1. HALEU Capacity Expansion: Centrus aims to scale production using a 120-centrifuge cascade within 42 months, creating thousands of jobs and unlocking a $50+ billion market for SMR fuel by 2035.

2. Geopolitical Tailwinds: The U.S. ban on Russian uranium since 2022 has intensified demand for domestic suppliers. Centrus's success in replacing Russian fuel with U.S.-produced LEU positions it as an indispensable partner for governments seeking energy independence.

3. Valuation and Funding: With $60 million in DOE cost-sharing already secured and private investment opportunities looming, Centrus's valuation remains undervalued relative to its long-term prospects.

Risks, but Manageable Ones

While regulatory delays and competition from state-owned entities pose risks, Centrus's DOE-backed contracts and geopolitical alignment with U.S. energy security goals mitigate these. The IRA's cost-plus incentives for Phase Two also reduce financial exposure.

Conclusion: A Once-in-a-Decade Opportunity

Centrus Energy is not just a uranium supplier—it is the lynchpin of the SMR ecosystem. Its leadership in HALEU production, coupled with strategic partnerships and policy tailwinds, creates a rare asymmetric opportunity. With SMRs poised to dominate the low-carbon energy landscape, investors ignoring Centrus risk missing a multi-decade growth story.

Act now: Secure exposure to Centrus before its HALEU capacity comes online and geopolitical demand surges. The nuclear renaissance is here, and Centrus is leading the charge.