Centrus Signs Agreement with KHNP and POSCO International for Potential Investment in American Uranium Enrichment

Centrus Energy has signed a Memorandum of Understanding with Korea Hydro & Nuclear Power (KHNP) and POSCO International to explore potential investment to support expansion of its uranium enrichment plant in Ohio. The agreement provides a framework for future private investments and validates the demand for Centrus' technology. It also calls for the companies to explore additional opportunities for cooperation, including supply agreements for Low-Enriched Uranium and High-Assay, Low-Enriched Uranium for next-generation reactors.

Centrus Energy (NYSE American: LEU) has signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (KHNP) and POSCO International to explore potential investment in the expansion of its uranium enrichment plant in Piketon, Ohio. The agreement, signed on August 25, 2025, aims to strengthen U.S.-Korea cooperation in civilian nuclear energy and validate market demand for Centrus' technology [1].

The MOU, which is non-binding, provides a framework for future private investments to support the expansion of Centrus' enrichment capacity. It also calls for the companies to explore additional opportunities for cooperation, including supply agreements for Low-Enriched Uranium (LEU) and High-Assay, Low-Enriched Uranium (HALEU) for next-generation reactors [1].

Centrus and KHNP finalized a supply contract in February 2025 to support the construction of new uranium enrichment capacity at Centrus' American Centrifuge Plant in Ohio. The two companies agreed to a higher supply volume of LEU under this contract, contingent upon Centrus receiving the necessary federal funding to build the new LEU production capacity [1].

The agreement reflects strong demand for a U.S.-owned uranium enrichment capability and another potential avenue for private investment capital to bring added supply diversity and competition to the marketplace. 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].

Centrus is competing for funding from the U.S. Department of Energy (DOE) to expand U.S. enrichment capacity. This federal investment is crucial to achieving economies of scale and enabling a U.S.-owned enrichment capacity to compete against foreign, state-owned enterprises that currently have almost 100% of the world's uranium enrichment capacity. Centrus is committed to matching federal funds with substantial private capital and utility purchase commitments as part of a public-private partnership [1].

The agreement also supports the DOE's broader effort to revitalize America's nuclear industry and reduce reliance on foreign sources of enriched uranium. The DOE has conditionally selected Standard Nuclear to participate in a new federal fuel line pilot program, which aims to build out a secure and domestic fuel supply line for advanced reactor developers [2].

The MOU is a significant step forward for Centrus Energy and highlights the growing demand for U.S.-owned uranium enrichment capabilities. It also demonstrates the potential for public-private partnerships in the nuclear energy sector to meet both domestic and international needs.

References:
[1] https://www.prnewswire.com/news-releases/centrus-signs-agreement-with-khnp-and-posco-international-for-potential-investment-in-american-uranium-enrichment-302538122.html
[2] https://dailyenergyinsider.com/news/49206-doe-taps-standard-nuclear-for-u-s-fuel-supply-pilot-program-pending-final-approval/