US Nuclear Revival Threatened by Critical Fuel Shortage

September 25, 2025

The United States’ burgeoning nuclear energy sector faces a significant hurdle as a critical shortage of domestically produced nuclear fuel threatens to derail its revival. Despite growing interest in advanced reactor designs and legislative support, the nation’s limited capacity to enrich uranium, coupled with geopolitical tensions and past policy decisions, has created a precarious situation for the industry’s future.

Key Takeaways

The U.S. nuclear industry’s comeback is jeopardized by a severe lack of domestic uranium enrichment capacity.
Past privatization of enrichment facilities and reliance on foreign suppliers, particularly Russia, have weakened the U.S. supply chain.
Developing advanced reactors requires High-Assay Low-Enriched Uranium (HALEU), for which U.S. production is nascent.
Inconsistent market signals and the need for substantial investment hinder the expansion of domestic enrichment capabilities.

A Fragile Foundation

The U.S. nuclear industry is experiencing renewed optimism, with ambitious companies developing next-generation reactors and lawmakers pushing for a resurgence. However, this enthusiasm is tempered by the stark reality of America’s diminished nuclear fuel production capabilities. Decades of reduced government investment and privatization have led to a significant decline in domestic enrichment capacity, leaving the U.S. heavily reliant on foreign sources, including Russia, which dominates the global enrichment market.

The HALEU Challenge

Advanced reactor designs, often referred to as Generation IV reactors, require a specialized fuel known as High-Assay Low-Enriched Uranium (HALEU). The U.S. currently has very limited capacity to produce HALEU. While companies like Centrus Energy are working to establish domestic HALEU production, significant investment and sustained political backing are required to scale up operations. This creates a