U.S. Nuclear Fuel Enricher Expands Capacity to Counteract Russian Uranium Import Ban

The United States' sole commercial-scale nuclear fuel enricher, Urenco USA, has finalized a multi-billion dollar expansion project, aiming to boost its uranium enrichment capacity by nearly 50% to help reduce the nation's reliance on Russian uranium supplies.

This consortium, owned by the UK, Netherlands, and Germany, announced on Tuesday the expansion of its uranium enrichment plant in Eunice, New Mexico. The project, slated for completion and commissioning within six years, aims to mitigate the risk of nuclear fuel shortages for U.S. power plants stemming from the ban on Russian uranium.

Urenco USA

In a statement on Tuesday, CEO Boris Schucht said, "This expansion underscores our commitment to helping build a resilient nuclear fuel supply chain for the United States, meeting the long-term needs of our customers and supporting the nation's energy security."

The expansion coincides with efforts to significantly expand U.S. nuclear power generation capacity, with goals to quadruple output, a move that will necessitate a corresponding increase in uranium enrichment capacity. As the U.S. seeks to power a growing number of AI data centers, nuclear power stands out as a key energy source.

However, the U.S. Energy Information Administration warned last September that operators of existing U.S. nuclear reactors could face uranium supply shortages over the next decade. Russia has long been a dominant player in the global nuclear fuel market, supplying about one-fifth of U.S. needs two years ago. The U.S. implemented a full ban on imports of Russian uranium in 2024, with limited exemptions set to expire in 2028.

Urenco's investment will be directed entirely to the New Mexico plant expansion, which involves adding 24 uranium enrichment centrifuges, with the first unit expected to be operational by 2032. Upon completion, the expansion will add 2.1 million separative work units (SWU) of enrichment capacity. The plant's existing capacity is 4.3 million SWU annually, representing approximately one-third of current U.S. enrichment demand.