Critical uranium deal moves America’s next-gen nuclear reactors closer to reality

Centrus Energy, a US nuclear fuel supplier that produces and enriches uranium, has signed a contract with X-energy for enrichment services to support its planned reactors in the US. Under the agreement, Centrus will provide both low-enriched uranium (LEU) and high-assay, low-enriched uranium (HALEU). The quantities are expected to support X-energy’s initial Xe-100 small modular reactors and TRISO-X fuel deployments. X-energy will make prepayments to Centrus as part of the deal. The payments are designed to help Centrus expand its domestic commercial enrichment capacity without relying solely on debt or issuing new shares. Centrus plans to produce the LEU and HALEU at its American Centrifuge Plant in Pike County, Ohio. The agreement adds to the company’s existing $3 billion contingent LEU and HALEU backlog, of which $2.4 billion has already been definitized. Fuel supply meets reactor demand The deal comes as the US works to rebuild domestic uranium enrichment capacity and reduce dependence on foreign fuel supplies. HALEU is particularly important for several advanced reactor designs because it contains a higher concentration of uranium-235 than conventional reactor fuel. Centrus is expanding enrichment capacity in response to growing demand from advanced nuclear projects. The company recently signed a $900 million HALEU enrichment award with the US Department of Energy. For X-energy, securing fuel is an important part of moving its Xe-100 reactor technology toward commercial deployment. The company has announced commercial relationships with Dow Inc., Amazon and Centrica to support advanced nuclear projects and the demand for reliable, carbon-free electricity. The agreement also gives Centrus additional funding to expand its enrichment operations. The company says prepayments under HALEU offtake agreements provide non-dilutive, non-debt capital that can support capacity expansion. “This is another significant agreement that validates Centrus as the go-to, de-risked supplier of HALEU to the global market,” said Amir Vexler, President and Chief Executive Officer of Centrus. Building America’s enrichment base Centrus said the work in Piketon, Ohio, and Oak Ridge, Tennessee, is intended to strengthen the US nuclear fuel supply chain and remove enrichment constraints for advanced reactor developers. The company has supplied nuclear fuel and services to utility customers since 1998. It says its fuel has supported more than 1,850 reactor years of operation. The latest agreement also highlights how reactor developers and fuel suppliers are increasingly tying commercial contracts together before new nuclear plants are built. For advanced reactors, having a dependable supply of the right fuel is a key requirement alongside reactor construction, licensing and customer commitments. Centrus expects its domestic enrichment expansion to target a global market where enriched uranium supply remains constrained. Its projects are also expected to create jobs in the US as the company expands production capacity. For X-energy, the contract provides a path toward securing the LEU and HALEU needed for its initial reactor and fuel deployments. For Centrus, the prepayments offer additional capital to expand enrichment capacity while building a commercial customer base for US-produced nuclear fuel.The agreement connects two parts of the advanced nuclear supply chain: the reactors that need specialized fuel and the domestic infrastructure needed to produce it.Recommended ArticlesGet the latest in engineering, tech, space & science - delivered daily to your inbox.With over a decade-long career in journalism, Neetika Walter has worked with The Economic Times, ANI, and Hindustan Times, covering politics, business, technology, and the clean energy sector. Passionate about contemporary culture, books, poetry, and storytelling, she brings depth and insight to her writing. When she isn’t chasing stories, she’s likely lost in a book or enjoying the company of her dogs.