Centrus Energy Shares Surge 53.7% Amid U.S. Support for Domestic Nuclear Fuel Production.

Centrus Energy's shares surged 53.7% in September due to US government support for domestic nuclear fuel production. The US plans to increase its strategic uranium reserve and reduce reliance on Russian uranium imports. Centrus Energy aims to expand its US-based enrichment plant to support US production and reduce reliance on foreign entities.

Centrus Energy's shares surged 53.7% in September, driven by U.S. government support for domestic nuclear fuel production. The U.S. government plans to increase its strategic uranium reserve and reduce its reliance on Russian uranium imports. This support has boosted confidence across the industry, driving several uranium and nuclear stocks higher during the month.

The U.S. government's announcement on September 15, 2025, indicated a significant shift in policy aimed at boosting domestic production of nuclear materials. U.S. Energy Secretary Chris Wright recommended that the U.S. increase its strategic uranium reserve to help buffer against Russian supplies. Russian supplies were banned in August 2024, with the full ban expected to be phased in by 2028. This creates a significant need to replace approximately 25% of enriched uranium currently imported from Russia.

Centrus Energy, a leading U.S. supplier of nuclear fuel and enrichment services, benefited from this news. The company announced plans to expand its U.S.-based enrichment plant to support domestic production and reduce reliance on foreign entities. Centrus currently has two commercial agreements to sell Low-Enriched Uranium (LEU), one of which is with TEXEX, a Russian entity. In the long term, Centrus aims to produce LEU and High-Assay, Low-Enriched Uranium (HALEU) at its Piketon, Ohio plant, utilizing its advanced centrifuge technology.

The expansion of its Ohio plant hinges on Department of Energy funding, private investment, and long-term customer commitments. Centrus has raised over $1.2 billion and secured contingent purchase commitments of $2 billion from utilities. However, the full scale and timing of the expansion remain contingent on federal funding decisions from the Department of Energy.

Centrus Energy is well-positioned for a nuclear revival. The company's Piketon facility has the potential to be crucial to domestic fuel production. However, scaling it will require time and capital and hinges on securing funding. The stock trades at a premium today, but for investors who believe in the long-term nuclear revival, Centrus is one way to gain exposure to it.