Centrus Energy Corp. (LEU), a U.S. nuclear fuel supplier, has secured a $900 million contract from the U.S. Department of Energy to expand its uranium enrichment facility in Piketon, Ohio, for commercial-scale production of High-Assay Low-Enriched Uranium (HALEU). This initiative is part of the government’s strategy to quadruple nuclear energy capacity by 2050 amid increasing electricity demands driven by artificial intelligence (AI) applications, which are projected to boost U.S. electricity requirements by 25% by the end of the decade.
The company has experienced a remarkable 1,350% growth over the past five years in stock value but is currently trading around 25% lower than its October 2023 highs, and approximately 95% below its peak in 2007. With a Zacks Rank of #1 (Strong Buy), Centrus Energy is actively working with next-generation nuclear reactor developers, including partnerships with Bill Gates-backed TerraPower, to revitalize the domestic uranium industry and reduce reliance on foreign sources, particularly Russia, which currently supplies significant portions of global uranium.
Centrus has reported secured commitments of $2.3 billion in uranium purchases from utilities, contingent on financing for its new capacity expansion, highlighting the growing demand for nuclear power as part of America’s energy strategy.
