WASHINGTON D.C. – The U.S. Department of Energy (DOE) has announced a significant expansion of its program to allocate high-assay low-enriched uranium (HALEU) to domestic companies, marking a critical step in accelerating nuclear fuel and reactor development and solidifying the nation’s energy independence. This latest round of commitments will supply specialized nuclear fuel to three U.S. organizations, aiming to jumpstart a domestic HALEU supply chain and enable the testing and deployment of next-generation advanced reactors.
The move is part of a broader federal strategy to triple U.S. nuclear energy capacity by 2050, reduce reliance on foreign-sourced nuclear materials, and position the U.S. as a global leader in advanced nuclear technology.
Boosting Domestic Nuclear Fuel Production
High-assay low-enriched uranium (HALEU) is a specialized nuclear fuel enriched to between 5% and 20% uranium-235, significantly higher than the 3-5% enrichment typically used in current light-water reactors. This higher enrichment allows for smaller, more efficient reactor designs, longer operating cycles, and enhanced performance, making it essential for many advanced reactor concepts such as small modular reactors (SMRs) and microreactors.
Currently, the United States lacks a commercial domestic supplier of HALEU, with most global capacity concentrated in Russia, posing geopolitical and supply chain risks. To address this, the DOE established the HALEU Availability Program in 2020, through which it allocates HALEU from its own sources, including material from the National Nuclear Security Administration (NNSA).
Second Round of HALEU Allocations
The recent announcement marks the second round of HALEU allocations this year. Three additional companies have received conditional commitments:
- Antares Nuclear, Inc.: This allocation will fuel their advanced microreactor design, with a goal to achieve criticality by July 4, 2026, under the DOE’s Reactor Pilot Program.
- Standard Nuclear, Inc.: The company will use the HALEU to establish TRISO fuel production lines, supporting both the Reactor Pilot Program and other advanced TRISO-fueled reactors.
- Abilene Christian University / Natura Resources LLC: This commitment will fuel a molten salt research reactor currently under construction in Texas.
Earlier this year, the DOE made its first HALEU allocations to five companies, with three of those requiring fuel delivery in 2025. The DOE plans to initiate contracting with the new recipients soon, with some potentially receiving HALEU later this year, and will continue expanding allocations to additional companies in the future.
Broader Strategy for Nuclear Energy Expansion
This focused effort on HALEU allocation is part of a comprehensive strategy by the U.S. government to revitalize its nuclear energy sector. In November 2024, the Biden-Harris administration unveiled a roadmap to deploy 200 GW of net new nuclear energy capacity by 2050, effectively tripling the current U.S. capacity of approximately 97 GW. This ambitious target aims to have 35 GW of new capacity operating or under construction by 2035, ramping up to a sustained deployment pace of 15 GW per year by 2040.
The strategy encompasses several key pillars:
- Building New Reactors: This includes new large, gigawatt-scale reactors, as well as small modular reactors (SMRs) and microreactors.
- Extending Existing Reactor Lifespans: Efforts are underway to extend and expand the operation of existing reactors through license renewals, power uprates, and potentially restarting recently retired plants.
- Improving Licensing and Permitting: The Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act, passed earlier this year, authorized new funding and mandates to streamline Nuclear Regulatory Commission (NRC) licensing processes.
- Workforce and Supply Chain Development: The administration is focused on developing the necessary workforce and component supply chains for both nuclear fuel and reactor construction.
- Spent Fuel Management: Addressing the long-term management of spent nuclear fuel remains a critical aspect of the overall strategy.
Legislative and Executive Support
The push for nuclear energy is underpinned by significant legislative and executive actions. The Inflation Reduction Act (IRA), signed into law in August 2022, includes approximately $369 billion in climate provisions, with substantial benefits for the nuclear industry. Key provisions include:
- Production Tax Credits (PTCs): The IRA provides a $15 per megawatt-hour tax credit for electricity produced by existing nuclear plants, effective from 2024 through 2032, to help them remain competitive.
- Technology-Neutral Clean Electricity Credits: For new nuclear facilities placed into service in 2025 or later, the IRA offers a new technology-neutral tax credit of at least $25 per megawatt-hour for the first ten years of operation, or an alternative 30% investment tax credit.
- HALEU Funding: The IRA specifically allocated $700 million for research, development, and production of domestic HALEU fuel.
Additionally, recent Executive Orders from the Trump administration in May 2025 aim to further accelerate the development of new nuclear reactor technologies, enhance domestic uranium mining, incentivize private investment, and facilitate American nuclear exports. These orders mandate governmental agencies to assess and improve nuclear fuel, waste disposal, and uranium conversion capacities, and to streamline the licensing process for new reactors.
The Department of Energy’s Office of Nuclear Energy is also establishing a Defense Production Act (DPA) Consortium to create voluntary agreements with companies to increase fuel availability and reduce reliance on foreign enriched uranium, leveraging DPA authorities to overcome supply chain gaps.
By strategically allocating HALEU and implementing supportive policies, the U.S. aims to ensure a secure, clean, and independent energy future powered by a revitalized nuclear industry.
