Centrus Energy stock jumps after uranium enrichment construction begins

Shares of Centrus Energy (LEU) rose sharply Friday after the company said it has begun building new centrifuges for commercial production of low-enriched uranium.

The stock gained as much as 14 percent following the announcement, reflecting investor response to progress on the long-planned enrichment project.

Centrus said the construction marks the start of a domestic expansion intended to support commercial supplies of low-enriched uranium, or LEU. The company has been developing the facility for several years.

The United States currently relies heavily on foreign sources for enriched uranium. Nearly one quarter of enriched uranium used domestically is imported from Russia. The remainder comes from companies such as Urenco and Orano, which are owned by foreign governments.

The U.S. has not produced its own enriched uranium since the last domestic plant closed in 2013. That shutdown followed reduced support for nuclear energy after the Fukushima nuclear disaster in 2011.

Under policies advanced during the administration of Donald Trump, the U.S. has sought to reduce dependence on foreign energy sources, including nuclear fuel.

Centrus, along with BWXT and General Matter, is U.S. owned and operates domestically. That allows its fuel to be classified as unobligated.

Unobligated fuel can be used for U.S. government purposes. Fuel that relies on foreign technology or equipment cannot be used in government programs, including naval reactors, Department of Energy research reactors, and other federal nuclear initiatives.

Centrus said it will manufacture its AC100M enrichment centrifuges using a domestic supply chain. The design is based on the earlier AC100 model used in prior enrichment cascades.

The company has received support from the Department of Energy through its LEU award program. Centrus also cited international backing from South Korea and recent capital raises as support for the project.

Centrus is already producing high-assay low-enriched uranium developed with the Department of Energy. The company expects its first commercial production of LEU in 2029.