Following Trump’s New Order:
Reuters’ Forecast of Rising Uranium Prices: “Nuclear Energy Is No Longer an Option, It’s a Necessity”
Experts in the nuclear energy industry say that the new executive orders issued by the U.S. President, aimed at reviving the industry in the United States, could lift the uranium market out of its current slump and boost investor interest.
After traditional investors withdrew from the market due to fears of recession and geopolitical instability, the spot price of uranium dropped by about 30% compared to the peak it reached in 2023.
With increasing global pressure for a transition to clean energy and predictions of a reduction in production, each pound of this mineral was traded at $64.30 this year, after it reached its highest level in 14 years in February of the previous year.
However, according to sources active in the industry, the latest executive orders by U.S. President Donald Trump, issued on Friday, could revive uranium production in the U.S., which, in light of growing electricity demand, may help meet part of it.
According to Reuters, the primary reason for the rise in demand is the increasing need for data centers and information processing to power the artificial intelligence industry, and nuclear energy, due to its high power output and near-zero carbon footprint, is considered an attractive option for tech giants such as Amazon, Google, Microsoft, and Meta.
However, nuclear projects have faced increasing costs and are competing with gas-fired power plants. “Vogtle,” the last U.S. reactor to enter the production cycle, faced a $16 billion budget shortfall, and its launch was delayed for several years.
Curtis Moore, Vice President of “Energy Fuels,” states that the current weakness in the uranium industry has made advancing new domestic projects difficult due to a lack of investor interest.
The shares of major companies in this industry, including Energy Fuels, Uranium Energy Corp, and Encore Energy, fell by 13%, 23%, and 53%, respectively, this year. However, following Trump’s new orders, these companies’ stocks rose between 17% and 23%.
Analysts expect this upward trend to continue, with new uranium production prices estimated to exceed $100 per pound. The spot price for uranium is currently around $70 per pound, and futures are trending toward $80. Trump’s new executive orders also include accelerating the issuance of permits for the construction of new reactors.
Justus Parmer from the investment firm “Fortuna” states that this order is “essentially a defensive move in a time of war. We produce one million pounds of uranium annually, while we consume 50 million pounds every year. Nuclear energy is no longer an option; it’s a necessity.”
Industry sources close to the situation expect Washington’s new policy to accelerate the deployment of modular reactors and help facilitate the flow of investment and improve the operational lifespan of reactors.
Travis McPherson from Canada’s “NextGen Energy” predicts a “frenzied rush (by countries) to secure uranium resources,” stating that the industry will resemble “musical chairs,” where many will be left without a seat and with no options!
