Shenk reported in early June 2025 that the U.S. Department of Energy's commitment to supply high-assay low-enriched uranium (HALEU) to Westinghouse, Kairos Power, TerraPower, Radiant Industries and TRISO-X brings demonstration small modular reactors (SMRs) closer to reality.
Source: OECD Nuclear Energy Agency (NEA)
The first four firms are developing SMRs and have also received support from the DOE’s Advanced Reactor Demonstration Program. TRISO-X, a subsidiary of SMR developer X-energy, is building a facility in Tennessee to produce HALEU-based TRISO fuel. The DOE selected the five companies in April under a multi-billion dollar nuclear fuel availability program launched in 2020.
U.S. nuclear development activity has soared as surging power demand from AI accelerates the need for low carbon power generation. SMRs offer smaller capacities and land requirements than conventional large-scale nuclear plants, as well as longer operating cycles and increased efficiencies.
“TerraPower is pleased to see the commitment from the White House and Department of Energy to supporting advanced nuclear energy, and the fuel needed for next generation reactors that allow them to operate more safely and efficiently than the current light-water reactor technology,” a TerraPower spokesperson told Reuters Events.
The White House personnel want to accelerate a new wave of nuclear plant construction and on May 23 they ordered the DOE to issue a plan to expand production of several nuclear fuels, including HALEU, within 120 days. They also ordered the U.S. Nuclear Regulatory Commission (NRC) to streamline regulations and fast-track new licenses for reactors. Most SMR designs plan to use HALEU nuclear fuel and the U.S. has minimal production capacity. Developers have been racing to secure supplies of HALEU amid fears that a lack of domestic nuclear fuel supply chain could delay development of the industry. Russia is the largest global supplier of the fuel and the Biden administration banned uranium imports from Russia following its invasion of Ukraine.
Source: U.S. Energy Information Administration (January 2025).
The DOE's allocation of HALEU to the five developers “provides material for initial core loads to build and demonstrate their designs,” Adam Stein, director of nuclear energy innovation at the Breakthrough Institute, told Reuters Events. Huge investments must be made in the U.S. nuclear fuel supply chain to avoid bottlenecks in the coming years.
“Broader fuel availability will be needed for refueling and larger scale-up," Stein noted. "Lack of fuel availability to operate a reactor long-term is one concern potential buyers have right now."
Fueling growth
Westinghouse will use the fuel at its eVinci nuclear test reactor at National Reactor Innovation Center (NRIC) DOME facility at Idaho National Laboratory while TerraPower will use it to fuel its Natrium reactor in Kemmerer, Wyoming. Kairos Power will use the material to produce HALEU TRISO (tri-structural isotropic) fuel pebbles for its Hermes Low-Power Demonstration Reactor in partnership with the Los Alamos National Laboratory.
“The HALEU allocation from DOE will enable Kairos Power to demonstrate our advanced reactor technology, prove its ability to produce affordable nuclear heat, and generate crucial learning to support future fleet deployment,” Micah Hackett, Kairos Vice President, Fuels & Materials told Reuters Events.
X-energy subsidiary TRISO-X is constructing a HALEU fuel fabrication facility at the DOE’s site in Oak Ridge, Tennessee, and Radiant Industries is seeking funding to build its Kaleidos Development Unit microreactor for testing at the Idaho National Laboratory (INL). The U.S. HALEU supply chain needs to grow rapidly if SMR technology is to move beyond the research and demonstration stage and become commercially viable. SMRs will typically need to refuel every five to seven years, according to the International Atomic Energy Agency (IAEA).
“DOE’s announcement does not indicate whether or when additional allocations may be made available,” Steve Greene, Senior Fellow at the Nuclear Innovation Alliance, noted.
U.S. demand for HALEU could reach 50 metric tons per year by 2035, with additional amounts required each year, according to the DOE. Centrus Energy is currently the only U.S. maker of the fuel and has the capacity to produce 900 kilograms per year.
“Developers will be dependent upon additional legacy materials for first cores until a supply chain is established," Westinghouse said in a statement to Reuters Events. "These [DOE] allocations do build familiarity with handling and transporting HALEU materials which will ultimately benefit a larger commercial supply chain," the company said.
“We believe orders for advanced reactors are the primary demand signal that will be required to spur enrichment companies to invest in HALEU production capacity,” Hackett said.
USA buys
Last October, the DOE awarded ten contracts with companies to provide enrichment services that will help establish and build out a domestic supply of HALEU and low-enriched uranium (LEU), and for deconversion services. The contracts establish a framework for DOE procurement and the DOE must make purchase agreements before the companies can invest in new production capacity. The 10-year contracts will each offer a minimum of $2 million, with up to $3.4 billion available from the 2022 Inflation Reduction Act (IRA).
“Investment in domestic HALEU production is still needed, and will require U.S. Government policy support as either an intermediate purchaser to provide adequate demand or through public-private partnerships in production facilities," Greene said.
The DOE is behind schedule in implementing its nuclear fuel availability program and the White House recent executive orders reiterated DOE’s obligation to ensure that a long-term supply of enriched uranium is available for the continued operation of the projects, Greene noted.
If government and private sector funding is provided, Centrus Energy could build a full-scale cascade producing six metric tons of HALEU per year within around 42 months, Dan Leistikow, vice president of corporate communications for Centrus, told Reuters Events. It would take a further six months to get another cascade online and another two months to get a third online, he said.
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