US President Joe Biden signed the Prohibiting Russian Uranium Imports Act into law on Monday (May 13), effectively starting the process of ending US dependence on imported uranium supply.
“And — building off the unprecedented US$2.72 billion in federal funding that Congress recently appropriated at the President’s request — it will jumpstart new enrichment capacity in the United States and send a clear message to industry that we are committed to long-term growth in our nuclear sector,” he continued.
The act aligns with multilateral goals established last December with US production allies, including Canada, France, Japan and the UK. They pledged to invest US$4.2 billion to expand uranium enrichment and conversion capacities.
The new legislation is set to change the status quo. With the backing of the federal government, the US has set its sights on sourcing its uranium needs locally, starting with the production of high-assay low-enriched uranium (HALEU) in Ohio.
The bipartisan bill, which received approval from the House of Representatives in December, includes provisions for waivers in the event that US nuclear reactors have trouble securing non-Russian supply. Moreover, it earmarks US$2.7 billion to bolster the development of the domestic uranium-processing industry.
Uranium fuels nuclear reactors, playing a vital role in electricity generation. The US ban on Russian imports mirrors previous actions taken against the nation, such as the prohibition of Russian oil imports following the country’s invasion of Ukraine in 2022, alongside the implementation of price controls on select crude product exports.
The statute, which will expire at the end of 2040, includes provisions allowing the Department of Energy (DOE) to issue waivers authorizing Russian uranium imports according to limits established in an anti-dumping agreement.
Senator John Barrasso, a Republican senator from Wyoming and a top figure on the Senate Energy Committee, emphasized the readiness of states like Wyoming to step in and fill the void left by Russian imports.
Work to produce HALEU in the US is reportedly already underway.
Last autumn, a facility in Ohio initiated the nation’s first domestic production of HALEU, albeit at a small scale. Now, with the support of the federal government, efforts are underway to expand domestic production capacity.
The DOE has offered private companies a minimum of US$2 million each to kickstart HALEU production, marking the second phase of a US$500 million allocation from Biden’s climate-spending law, the Inflation Reduction Act.
He called on the Senate and White House to champion measures to deploy nuclear waste recycling, describing it as a win-win solution that addresses both the nuclear waste problem and the need for domestic fuel production.
This is an updated version of an article first published by the Investing News Network on May 1, 2024.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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