US DOE Awards $2.7 Billion to Bolster Domestic LEU and HALEU Enrichment
In a major push to revitalize the domestic nuclear fuel cycle, the United States Department of Energy (DOE) awarded approximately $2.7 billion in contracts in January 2026. These funds are specifically earmarked to expand domestic enrichment capacity for both low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU).
The substantial investment underscores the federal government's commitment to establishing a robust, secure, and independent nuclear supply chain. With the federal government emerging as the largest counterparty across multiple segments of the uranium market, this funding is critical for ensuring that the US has the necessary fuel infrastructure to support its existing fleet of conventional reactors as well as the next generation of advanced nuclear technologies.
Securing the Advanced Reactor Supply Chain
The inclusion of HALEU in this massive funding package is particularly significant for the advanced reactor industry. Most next-generation reactor designs, including small modular reactors (SMRs) and microreactors, require HALEU enriched between 5% and 20% U-235. Historically, the lack of domestic HALEU availability has been a primary bottleneck for the deployment of these innovative technologies.
The US Department of Energy awarded approximately $2.7 billion in contracts to expand domestic enrichment capacity for both low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU).
By injecting $2.7 billion into the sector, the DOE is directly addressing this bottleneck. The contracts will support companies like Centrus Energy in scaling up their commercial enrichment operations, such as the expansion at the Piketon facility. This policy intervention not only mitigates supply chain risks but also aligns with broader national security objectives. Ensuring a domestic source of unobligated HALEU is vital for defense applications, including the US Space Force and Army field power projects, which cannot rely on fuel subject to international peaceful-use restrictions. The DOE's aggressive funding strategy positions the US to lead the global advanced nuclear market.
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