Centrus Energy Surges 5.59% on $320M Volume as Strategic Partnership Boosts Uranium Capacity, Ranks 317th in Market Activity

Centrus Energy (LEU) surged 5.59% on August 28, 2025, with a trading volume of $320 million, ranking 317th in market activity. The company has secured a revised agreement with Korea Hydro & Nuclear Power (KHNP) and POSCO International to expand its uranium enrichment capacity at Piketon, Ohio. The partnership aims to attract private capital and align with potential U.S. Department of Energy funding to boost low-enriched uranium (LEU) production. This move is designed to counter competition from state-owned enterprises and position Centrus as a key supplier to Korea, a major nuclear energy market. KHNP, the world’s third-largest nuclear operator, and POSCO, which is developing a next-generation reactor fueled by HALEU, could provide critical demand for Centrus’s products.

The collaboration includes options for additional supply agreements and exploration of high-assay, low-enriched uranium (HALEU) for advanced reactors. Centrus’s strategy hinges on leveraging public-private partnerships, combining federal support with private investment and utility commitments. This aligns with growing global nuclear energy demand and South Korea’s leadership in reactor construction projects. However, the company’s expansion remains contingent on securing DOE funding, which remains uncertain. Despite these risks, the partnership is seen as a strategic step to strengthen Centrus’s market position amid a tightening uranium supply chain.

Analysts highlight Centrus’s 214% year-to-date gain, outperforming the S&P 500’s 10.55% rise, though its 2025 earnings estimate of $4.23 per share reflects a 5.37% annual decline. The company’s forward price-to-sales ratio of 7.44X also exceeds the industry average, indicating a valuation premium. While the partnership signals long-term potential, near-term execution risks and funding dependencies remain critical factors for investors.

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