Experts Warn of Looming Nuclear Fuel Shortage Despite Billions in Federal Investment

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The Department of Energy has committed billions of dollars to boost domestic production of enriched uranium to support advanced nuclear reactors, but industry experts warn a fuel shortage could still disrupt the 'nuclear renaissance' as early as 2028 when a ban on Russian uranium imports takes effect. Despite the federal investment, less than 1% of the fuel used by the nation's commercial reactors is currently produced domestically, with the industry largely dependent on foreign imports. Experts say the race is now on to rapidly expand domestic enrichment capacity before demand surges following recent executive orders aimed at licensing new reactors and quadrupling nuclear energy output by 2050.

Why it matters

The potential nuclear fuel shortage raises concerns about the viability of the U.S. government's push for a 'nuclear renaissance' to reduce carbon emissions and bolster energy security. Domestic uranium enrichment capacity is seen as a national security priority, but the industry is racing against the clock to scale up production before the Russian import ban takes effect and demand outpaces supply.

The details

The Department of Energy awarded $2.7 billion last month to three companies - General Matter, Orano Group's Federal Services, and Centrus Energy - to construct new centrifuge and processing facilities to produce low-enriched uranium and high-assay low-enriched uranium (HALEU) for advanced nuclear reactors. However, large-scale production at these facilities is not expected until the early 2030s, creating a potential supply gap beginning in 2028 when a ban on Russian uranium imports takes effect. Industry leaders say the federal funding helps seed domestic self-sufficiency, but the pace of expansion now depends on private-sector commitments, with utilities and reactor developers urged to begin negotiating 'offtake' agreements to secure future fuel supplies and provide enrichment companies with firm orders needed to justify scaling up production.

• The Department of Energy awarded $2.7 billion in funding on January 5, 2026.
• A ban on importing Russian uranium is set to take effect on January 1, 2028.
• Executive orders were issued in May 2025 directing the licensing of 10 new reactors by 2030 and quadrupling nuclear energy output by 2050.

What they’re saying

What’s next

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