US Invests $2.7 Billion to Rebuild Nuclear Fuel Supply and Strengthen Energy Security

The United States is making its largest investment in uranium enrichment in decades, committing $2.7 billion to rebuild and expand domestic nuclear fuel production over the next ten years. Announced by the Department of Energy (DOE), the initiative marks a strategic shift away from reliance on foreign suppliers and underscores a renewed push to strengthen energy security while supporting the next phase of nuclear power development.

At the core of the plan is the expansion of US capacity to produce low-enriched uranium (LEU), which fuels today’s commercial reactors, alongside the development of high-assay low-enriched uranium (HALEU), a critical input for advanced reactor technologies. Together, these efforts aim to ensure the continued operation of the country’s 94 nuclear reactors while laying the foundation for next-generation nuclear systems.

To advance this goal, the DOE has awarded milestone-based task orders to three companies. American Centrifuge Operating and General Matter will each receive $900 million to establish domestic HALEU enrichment capacity-an area where the United States currently lacks large-scale production. Orano Federal Services will receive another $900 million to expand domestic LEU enrichment, reinforcing fuel supply for the existing nuclear fleet.

The program also includes $28 million in funding for Global Laser Enrichment to advance laser-based enrichment technologies, which could lower costs, reduce energy use and improve efficiency across the nuclear fuel cycle.

Energy Secretary Chris Wright said the investment demonstrates a commitment to restoring a secure, end-to-end nuclear fuel supply chain capable of supporting both current and future reactors.

Officials say the move will reduce exposure to geopolitical risks, supply disruptions and price volatility associated with foreign enrichment services. Beyond energy security, the initiative is expected to create high-skilled jobs, revive technical expertise and position the US as a competitive player in the growing global nuclear market-reinforcing nuclear power’s role as a cornerstone of the country’s low-carbon energy transition.

$2.7 billion for nuclear-fuel supply resilience reshapes what US firm-power investment cases look like, and it opens investment opportunities for nuclear-adjacent technology providers well beyond the enrichment segment itself. Our energy-transition and market-intelligence teams help clients evaluate what nuclear-fuel investment means for long-horizon energy strategy.