US President Donald Trump’s recent executive orders to revitalize the US nuclear energy industry are expected to pull the uranium market out of its current slump, according to industry experts.
The orders aim to boost uranium production in the US to meet surging power demand, particularly from data centers that rely on massive amounts of energy for AI operations. Big tech firms like Amazon and Google are turning to nuclear energy due to its reliability and near-zero carbon footprint.
However, the industry has faced rising costs and competition from natural gas plants. The last US reactor to come online, Vogtle, was $16 billion over budget and delayed by several years.
Analysts expect the executive orders to provide confidence that Federal funds for supporting domestic nuclear fuel supply chains will be deployed quickly, attracting more private investment. Incentive prices for new uranium production are estimated above $100/lb, according to experts.
Spot uranium prices have fallen about 30% from their peak in 2023 due to recession fears and geopolitical instability. However, the latest orders may reinvigorate the industry, boosting investor interest.
Industry insiders expect the policy to accelerate deployment of small modular reactors, encourage capital inflows, and support reactor life extensions. A “mad rush” to secure uranium sources is predicted, with analysts noting that many will be left standing without a chair in the competitive market.
Source: https://www.reuters.com/business/energy/trumps-nuclear-energy-orders-would-boost-uranium-prices-investments-experts-say-2025-05-27