The US is woefully unprepared for the emerging nuclear-powered world. We neither mine nor refine enough of the metal to independently feed tomorrow’s reactors.
And Russia, which does have plenty of refined uranium, is apparently going to make us pay a price for our lack of foresight.
In news that will act as a headwind for the U.S.'s re-emerging nuclear industry, it was reported last week that Russia is temporarily restricting enriched uranium exports to the U.S., raising supply concerns for reactors that produce nearly 20% of the nation's electricity.
Russia provided no details or timeline for its uranium export restrictions in a Friday Telegram statement, though utilities' advance purchasing likely mitigates immediate effects, Bloomberg wrote in a report on Friday.
Amid global backlash over its war in Ukraine, Russia continues leveraging energy as a geopolitical tool, also cutting gas supplies to Austria—ending a 60-year agreement that fulfills 80% of its demand—citing a legal dispute.
Bloomberg noted that Russia's move targets a key U.S. vulnerability in the nuclear fuel cycle, as it controls nearly half of global uranium enrichment capacity and supplied over a quarter of U.S. enriched fuel last year.
Chris Gadomski, head nuclear analyst for BloombergNEF commented: “We don’t have enough enriched uranium here. They should have been stockpiling enriched uranium in anticipation of this happening.”
While 2023 deliveries are largely complete, a prolonged ban could affect reactor operators by 2025, leaving some without alternative suppliers.
Cut a Deal With Russia AND Expand the Domestic Supply Chain
Clearly, the US needs to beef up its uranium supply chain, which is generally good news for the uranium miners. On Friday, with the rest of the stock market plunging, our Portfolio’s uranium stocks rose:
