The Strategic Case for Investing in U.S. Nuclear Fuel Supply Chain Infrastructure

The U.S. nuclear fuel supply chain is undergoing a seismic transformation driven by geopolitical urgency, energy security imperatives, and policy convergence. As Russia’s state-owned uranium enrichment dominance exits the market by 2028, the strategic case for investing in domestic infrastructure has never been stronger. At the heart of this shift is Centrus Energy, whose breakthroughs in high-assay low-enriched uranium (HALEU) production are dismantling foreign monopolies and reshaping the energy landscape.

Breaking Foreign Monopolies: Centrus Energy’s Pivotal Role

Centrus Energy has emerged as a linchpin in the U.S. effort to reclaim control over its nuclear fuel supply. The company’s American Centrifuge Plant in Piketon, Ohio—the first new U.S.-owned uranium enrichment facility since 1954—began operations in 2023 and is now producing HALEU, a critical fuel for advanced reactors [4]. This achievement is not just technological but geopolitical: it directly counters the dominance of Russian and European state-owned firms that have long controlled global enrichment markets [1].

Financially, Centrus is gaining traction. In Q1 2025, the company reported a net income of $27.2 million, driven by $73.1 million in revenue, a stark contrast to the $6.1 million net loss in Q1 2024 [1]. CEO Amir Vexler has emphasized that Centrus’s expansion aligns with a $3.4 billion federal funding package to bolster domestic HALEU production, positioning the company to capture a growing share of both low-enriched uranium (LEU) and HALEU markets [1]. With its Ohio facility capable of producing up to 25% of the uranium needed by U.S. reactors in 2023, Centrus is well-positioned to meet rising demand as the U.S. seeks to expand its nuclear capacity [3].

Trump’s Policy Shifts: A Blueprint for Energy Independence

The Trump administration’s 2025 executive orders have accelerated the dismantling of foreign reliance in nuclear fuel. These directives aim to quadruple U.S. nuclear capacity to 400 gigawatts by 2050 by removing regulatory barriers, expediting permitting for nuclear projects, and incentivizing advanced reactor development [2]. The administration’s focus on energy security is evident in its push for federal equity stakes in nuclear companies and the establishment of a consortium to secure domestic enriched uranium supplies [4].

This policy framework builds on earlier Trump-era initiatives, such as the 2019 Nuclear Energy Innovation and Modernization Act (NEIMA), which streamlined licensing for advanced reactors [5]. However, the 2025 orders go further by explicitly linking nuclear expansion to national security, framing it as a countermeasure to Russian and Chinese influence in global energy markets. The administration’s emphasis on energy equity—ensuring affordable, reliable power for all Americans—also aligns with its broader agenda of revitalizing coal and natural gas sectors while promoting nuclear as a clean, baseload solution [3].

Climate Action and Energy Equity: Converging Catalysts

Nuclear energy’s role in climate action is undeniable. It generates nearly 20% of U.S. electricity and over 55% of its carbon-free power [2]. As the Inflation Reduction Act’s tax credits phase out, the Trump administration’s 2025 executive orders have stepped in to fill the gap, offering loan guarantees and tax incentives to de-risk new projects [5]. This policy convergence—uniting climate goals with energy security—has created a fertile ground for investment.

Energy equity is another driver. Awolesi et al. highlight how inclusive energy transitions require addressing disparities in access and affordability [1]. Nuclear infrastructure projects, particularly those repurposing retired coal sites, offer a dual benefit: decarbonizing the grid while revitalizing economically distressed regions. For example, Public Service Enterprise Group’s thermal upgrades at nuclear facilities could qualify for tax credits while increasing output [1]. Such initiatives underscore the alignment of nuclear expansion with broader social and environmental objectives.

Investment Thesis: A Market in Motion

The U.S. nuclear fuel supply chain is at an inflection point. With Russian uranium imports phasing out by 2028, the supply gap will force a reevaluation of domestic capabilities. Centrus’s HALEU production, supported by $3.4 billion in federal funding, is a critical enabler of this transition. Meanwhile, Trump’s 2025 executive orders and the DOE’s advanced reactor initiatives are creating a regulatory and financial ecosystem that favors long-term investors.

For investors, the risks are clear—high upfront costs, nuclear waste management, and long development timelines—but the rewards are equally compelling. The U.S. government’s willingness to take equity stakes in nuclear firms and leverage the Defense Production Act for fuel recycling [2] signals a commitment to sustained support. As global demand for carbon-free energy grows, the U.S. nuclear supply chain is poised to become a cornerstone of both energy security and climate resilience.

Source:
[1] Centrus Reports First Quarter 2025 Results [https://investors.centrusenergy.com/news-releases/news-release-details/centrus-reports-first-quarter-2025-results]
[2] Trump's Executive Orders Aim to Revitalize U.S. Nuclear [https://natlawreview.com/article/fueling-americas-nuclear-renaissance-how-trumps-executive-orders-create-strategic]
[3] US Nuclear Fuel Cycle [https://world-nuclear.org/information-library/country-profiles/countries-t-z/usa-nuclear-fuel-cycle]
[4] US / Centrus Begins Enrichment Operations As Washington Aims to End Russian Monopoly on HALEU for Advanced Reactors [https://www.nucnet.org/news/centrus-begins-enrichment-operations-as-washington-aims-to-end-russian-monopoly-on-haleu-for-advanced-reactors-10-5-2023]
[5] Nuclear sector's views on second Trump administration [https://www.utilitydive.com/news/nuclear-energy-sector-mixed-views-second-trump-administration-joe-rogan/732407/]