Urenco USA has started production in the sixth cascade of new uranium enrichment capacity at its plant in New Mexico, which completes 75% of its current expansion. The company is adding 700,000 separative work units of capacity between 2025 and 2027.
At a glance
- The seventh cascade is due later this year and the final one in spring 2027.
- Urenco plans to start building a new 2.1 million SWU enrichment plant at the site in 2029.
- It aims to raise its US enrichment capacity to more than 7 million SWU over the next decade.
Background
Enrichment raises the share of uranium-235 from the 0.7% found in natural uranium to the 3.5-5% most reactors need. Capacity is measured in separative work units (SWU). The US has relied heavily on imported enrichment, so new domestic capacity matters for its fuel security.
What happened
Urenco USA has started production in the sixth cascade of new enrichment capacity at its National Enrichment Facility in New Mexico, World Nuclear News reported on October 12. That means 75% of the current expansion is complete.
The expansion adds 700,000 SWU of capacity through eight new centrifuge cascades in an existing building. Urenco expects to install the seventh cascade later this year and the last in spring 2027.
The bigger plan
Next year Urenco plans to start refurbishing existing cascades at the site. In 2029 it intends to begin building a new enrichment plant there, with 2.1 million SWU of capacity. Its first cascades would start production in 2032, with more added through 2036.
Jody Blackshear, managing director of Urenco USA, said the company is "consistently delivering new capacity" for the US nuclear industry and allied nations. "Our teams are doing it ahead of schedule and on budget," she said.
What it means
Urenco aims to expand its US enrichment capacity to more than 7 million SWU over the next decade. Blackshear said that means increasing enrichment production by more than 50% to serve traditional and advanced reactors.
Our read
Outlook: bullish. More enrichment capacity means more uranium can be processed into fuel, which supports long-term demand for uranium, though the effect is gradual.
What to watch
- Installation of the seventh cascade later this year.
- The final cascade in spring 2027.
- Construction of the new enrichment plant from 2029.
For information only, not investment advice.
Uranium price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-10: Production starts in the sixth new cascade, completing 75% of the expansion.
- 2027: The final cascade of the 700,000 SWU expansion is due in spring.
- 2029: Construction of a new 2.1 million SWU plant is due to begin.
Demand Drivers
Urenco says it is expanding to serve traditional and advanced reactors.
Supply Drivers
New US enrichment capacity reduces reliance on imported enriched uranium.
What could lift prices
- Expansion is on schedule and on budget, according to Urenco.
- More enrichment capacity supports demand for uranium feed.
What could weigh on prices
- The new 2.1 million SWU plant will not produce until 2032.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | Medium | It gains more domestic uranium enrichment capacity. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Nuclear Fuel Cycle | Positive | US enrichment capacity is growing on schedule. |
Who gains, who loses
- US nuclear utilities: They gain a larger domestic supply of enrichment services.
Other ways this could play out
- If the remaining cascades arrive on time, the expansion will be complete by spring 2027.
- Delays to the planned new plant would push back the larger capacity increase.
Price risks
- Enrichment prices and uranium demand depend on reactor build-outs.
- Large nuclear construction projects often face delays.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
Related
United States