The Biden-Harris administration has taken a crucial step to boost the U.S. nuclear energy sector. As part of the broader Investing in America agenda, the U.S. Department of Energy has awarded four major contracts to establish a domestic supply of high-assay low-enriched uranium, known as HALEU. This move aims to reinforce America’s leadership in advanced nuclear technologies, create high-quality jobs, and secure a robust, reliable nuclear fuel supply chain. The contracts, totaling up to $2.7 billion, are funded by the Inflation Reduction Act.

This initiative aligns with the administration’s ambition to achieve a net-zero emissions economy by 2050, build a domestic nuclear supply chain, and reduce reliance on adversarial foreign nations. By ensuring a secure supply of HALEU, the U.S. aims to power next-generation advanced nuclear reactors and achieve its climate goals.

Securing America’s nuclear future

U.S. Secretary of Energy Jennifer Granholm emphasized that President Biden and Vice President Harris are positioning nuclear energy as a cornerstone of America’s carbon-free electricity future. She noted that this announcement reflects the administration’s commitment to supporting advanced nuclear reactors, which are essential for reducing emissions and meeting the nation’s growing energy needs.

White House National Climate Advisor Ali Zaidi conveyed a similar sentiment, suggesting that America’s nuclear industry is undergoing a resurgence, with new investments flowing into cutting-edge technologies and advanced reactor projects. According to Zaidi, these contracts are designed to lower energy costs, create good-paying union jobs, and reinforce the critical fuel supply chain.

Why HALEU is crucial for America’s nuclear strategy

HALEU, or high-assay low-enriched uranium, is enriched between 5% and 20%, making it significantly more efficient than conventional low-enriched uranium. It plays a vital role in advanced nuclear reactors, allowing for smaller designs, longer operating cycles, and improved efficiency. However, the U.S. currently lacks the commercial capacity to produce HALEU, making these contracts a critical investment to support next-generation reactors.

The selected companies leading HALEU production

Four companies have been selected for these contracts, each poised to play a pivotal role in bolstering the nuclear energy supply chain:

Louisiana Energy Services, Orano Federal Services, General Matter, and American Centrifuge Operating. These companies will bid on future work to produce and store HALEU, which will ultimately be used as fuel for advanced reactors. The contracts will span up to ten years, with each company initially receiving $2 million and additional funding available based on further appropriations.

Reaching underserved communities through Justice40

The Biden-Harris administration has ensured that this initiative aligns with the Justice40 Initiative, which mandates that 40% of the benefits from specific federal investments flow to marginalized communities that have faced systemic underinvestment and pollution. This approach seeks to create opportunities for communities historically left behind by previous energy investments.

Powering advanced reactors with secure HALEU supply

The HALEU acquired through these contracts will be essential for fueling advanced reactors like TerraPower’s Natrium and X-energy’s Xe-100, developed under the Department of Energy’s Advanced Reactor Demonstration Program. This move is seen as a vital step toward strengthening America’s energy security, reducing emissions, and ensuring the availability of reliable, clean electricity.

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