US faces nuclear fuel dilemma as Russian and Chinese reliance persists

As the U.S. strives for energy dominance under President-elect Donald Trump, lingering energy insecurity remains—a critical issue affecting the development of advanced nuclear power.

Despite efforts to cut reliance on Russian-enriched uranium, the U.S. is still heavily dependent on foreign imports for fuel used in nuclear reactors that supply 20% of the nation's electricity. This is especially problematic for the future generation of nuclear plants required to meet growing power demands from data centres and artificial intelligence. Russia currently holds a monopoly on producing the enriched uranium needed for these reactors, according to a recent article by Foreign Policy.

In response to Russia’s war in Ukraine, the U.S. enacted legislation banning Russian uranium imports, reducing these imports by half in 2023. However, the U.S. has continued to rely on Russian fuel due to waivers, keeping this critical supply chain active. Meanwhile, Europe, particularly France, has also been reducing Russian imports while still purchasing uranium for Soviet-era reactors. According to the International Energy Agency (IEA), while nuclear power is poised for major growth in 2025, reliance on countries like Russia and China poses significant risks, highlighting the need for diversified supply chains.

The challenge is further compounded by the complex regulatory process involved in sourcing uranium, which takes years to navigate. Experts emphasize the urgency for nuclear operators to secure fuel years in advance, given the lengthy process involved.

Efforts to address this vulnerability are underway, with the U.S. Energy Department awarding contracts to six companies to increase domestic production of enriched uranium, including the highly enriched uranium (HALEU) needed for next-generation reactors. HALEU is critical for technologies like TerraPower’s and X-energy’s advanced reactors, expected to come online by 2030. Yet, despite the push to ramp up U.S. production, the nation still faces a significant gap in meeting HALEU demand, particularly with limited commercial production capacity.

The situation remains a complex challenge for the U.S., as its dependency on foreign sources like Russia and China threatens energy security and complicates its transition to new nuclear technologies, pushing the country to find immediate solutions for its fuel needs while also working on long-term solutions for HALEU production.

By Vugar Khalilov