Centrus Energy Corp. Invests $60 Million to Revitalize U.S. Uranium Enrichment Capacity and Reduce Foreign Dependence

Centrus Energy Corp., a leading supplier of nuclear fuel and services for the nuclear power industry, has recently made significant strides in advancing its uranium enrichment capabilities. The company has announced a substantial investment in centrifuge manufacturing, laying the groundwork for a potential large-scale expansion of uranium enrichment at its American Centrifuge Plant in Piketon, Ohio.

This investment, totaling approximately $60 million over the next 18 months, is part of Centrus’ broader efforts to reestablish America’s uranium enrichment capacity at scale. The company aims to reduce dependence on foreign nations by deploying American technology, built by American workers, and supported by an American supply chain. This all-American solution is seen as the best path forward to ensure a reliable fuel supply for today’s reactors, support the deployment of next-generation reactors, and meet America’s enduring national security needs for enriched uranium.

Centrus has secured over $2 billion in contingent purchase commitments from customers to support future production of Low-Enriched Uranium (LEU). Additionally, the company has been awarded two contracts by the U.S. Department of Energy aimed at enrichment and deconversion of High-Assay, Low-Enriched Uranium (HALEU). These contracts are part of a broader effort to jumpstart domestic nuclear fuel production, with Congress appropriating more than $3.4 billion to the Department of Energy for this purpose.

The company’s American Centrifuge Operating (ACO) subsidiary was selected by the Department of Energy as one of four awardees under a competitive solicitation aimed at expanding domestic commercial production of HALEU. The contract has a minimum value of $2 million and a contract ceiling of $2.7 billion for all awardees. ACO was also selected under a separate solicitation aimed at HALEU deconversion, a subsequent step in the HALEU production process.

Centrus President and CEO Amir Vexler emphasized the importance of this investment, stating that it will “jump-start what we hope will be a multi-billion dollar public and private commitment to reestablishing America’s uranium enrichment capacity at scale.” He highlighted the need for a public-private partnership, including robust federal investment alongside customer offtake commitments and private capital, to achieve this goal.

The company’s efforts in advancing uranium enrichment technology are critical to meeting long-term national security requirements, such as supplying fuel for the U.S. Navy and providing a source of tritium necessary to maintain the effectiveness of the nuclear deterrent. U.S. treaty obligations and longstanding nonproliferation policies prohibit the use of foreign uranium or foreign technology for these purposes.

Centrus has a long history of developing and deploying advanced centrifuge technology. The company began work under a contract with the U.S. Department of Energy in 2019 to build a cascade of 16 centrifuges in Piketon, Ohio, to demonstrate production of HALEU. This project is crucial for supporting the deployment of next-generation reactors, which require HALEU for operation.

In June 2021, the U.S. Nuclear Regulatory Commission approved a license amendment request for Centrus to enrich uranium up to a Uranium-235 concentration of 20 percent, making it the first U.S. facility licensed for HALEU production. This is higher than the 5 percent level found in Low-Enriched Uranium used in existing light-water reactors.

The company’s recent investment in centrifuge manufacturing and its ongoing efforts in advancing uranium enrichment technology position Centrus as a key player in the nuclear industry. With a billion-dollar order book and long-term supply agreements through 2030, Centrus is well-positioned to support its customers and the growth of the nuclear industry. The company’s vision is to be the trusted nuclear partner to the world, providing reliable and competitive fuel goods and services consistent with the highest levels of integrity, safety, and security.

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