Centrus Energy stock jumps after securing key DOE funding

The U.S. Department of Energy has awarded $2.7 billion in contracts to support domestic uranium enrichment. The awards cover low-enriched uranium and high-assay low-enriched uranium for existing and advanced nuclear reactors.

Three companies received the largest awards, with individual allocations reaching nearly $900 million. Other firms active in enrichment were not selected in this round.

Centrus Energy (LEU) received $900 million to expand its operating HALEU production capacity of about 900 kilograms per year. The funding also supports development of fuel for next-generation reactors.

The company recently began producing new centrifuge units for LEU output. Centrus now has U.S. government backing for HALEU supply and support from the Korean government for LEU activities.

Centrus shares rose as much as 9.2 percent in New York trading. The stock closed up nearly 25 percent over the past two sessions, marking one of its strongest two-day gains in the past year.

Energy Secretary Chris Wright said the awards aim to rebuild a secure domestic nuclear fuel supply chain. He said the effort supports both current reactors and future designs.

General Matter was awarded $900 million to develop HALEU capacity at a planned facility in Kentucky. The company was founded by Founders Fund’s Scott Nolan. It plans to submit a license application to the U.S. Nuclear Regulatory Commission this year for a site in Paducah.

Orano received $900 million to develop and build an LEU enrichment facility in Tennessee. The company, majority owned by the French government, has said the plant would have capacity measured in millions of separative work units.

Last month, Tom Cotton argued that firms coordinating with China’s nuclear program should not receive U.S. taxpayer funds.

Global Laser Enrichment was awarded $28 million to advance laser-based enrichment technology. The company is co-owned by Silex and Cameco and operates a test center in North Carolina.

Companies not selected included LIS Technologies, a partner of Nano Nuclear, and Urenco, which operates a commercial enrichment facility in New Mexico.

The awards are part of a broader federal effort to expand domestic nuclear fuel production capacity.