Uranium Is Hot: How New Nuclear Policies Could Spark A Market Revival

Forbes

3 days ago

Nuclear power in the U.S. has been relatively flat for the past 25 years. It is technologically viable, environmentally friendly, yet politically unpopular and economically uncompetitive.
But there is new cause for optimism. A new federal push to modernize and expand nuclear energy is breathing fresh life into the long-dormant uranium sector. And that could have important implications for investors looking to position ahead of what might become a structural shift in American energy policy.
Nuclear energy has long held an important place in the U.S. power landscape. Technically, it's one of the cleanest and most reliable forms of baseload electricity generation. Yet its growth has been stunted by a combination of regulatory hurdles, public skepticism, and the rise of cheaper alternatives like natural gas and, more recently, renewables.
In the wake of high-profile disasters like Chernobyl in 1986 and the Fukushima disaster in 2011, global enthusiasm for nuclear cooled significantly. That decline in demand led to a decade-long glut in the uranium market, driving prices down and forcing producers to idle mines and cut output. Many investors walked away from the sector entirely, convinced it would never regain its former relevance.
That narrative may now be changing. In May the White House announced four new Executive Orders aimed at advancing nuclear power in the U.S. The orders--Ordering the Reform of the Nuclear Regulatory Commission, Reinvigorating the Nuclear Industrial Base, Deploying Advanced Nuclear Reactor Technologies for National Security, Reforming Nuclear Reactor Testing at the Department of Energy--are intended to 'usher in a nuclear energy renaissance.'
The comprehensive plan includes faster permitting for next-generation reactors, direct support for nuclear utilities, and perhaps most significantly, a renewed focus on boosting domestic uranium production.
This policy shift is not just about energy economics—it's also about national security. Roughly half of the uranium used in U.S. reactors has come from foreign sources, including geopolitical rivals like Russia and Kazakhstan. The administration's push to rebuild a domestic uranium supply chain reflects growing concerns over strategic vulnerability in the critical mineral markets.
Uranium prices, which have languished for years, quickly responded to the policy news. Futures contracts for uranium rose about 7% following the announcement, and shares of U.S.-based miners like Cameco and Energy Fuels also notched gains.
More importantly, utilities appear to be reengaging with the uranium market. Several U.S. producers have reported a pickup in long-term contracting discussions—a key development in a commodity market often dominated by short-term pricing.
If that trend continues, it could lay the foundation for more stable prices and renewed investment in domestic mining infrastructure.
However, it is worth nothing that we have been here before. Uranium has seen multiple false starts in recent years. Policy announcements and investor optimism have occasionally sparked short-lived rallies, only to fizzle when momentum failed to translate into real-world demand.
One major headwind remains the cost and complexity of building new nuclear plants. Even with regulatory support, capital costs are high, and construction timelines are long. And while public perception of nuclear energy has softened somewhat, the sector still faces entrenched opposition from some environmental groups.
In short, the uranium thesis still relies heavily on follow-through. Utilities must sign contracts. Lawmakers must sustain bipartisan support. And developers must bring advanced reactor designs from blueprint to reality.
For investors interested in the space, several indicators will signal whether this latest nuclear push has staying power:
It's too early to call this a uranium renaissance, but the ingredients are coming together. Policy alignment, national security concerns, and the need for low-carbon baseload power are forming a clearer rationale for nuclear energy's return—and with it, uranium's relevance.
For investors with a tolerance for volatility and a long-term outlook, uranium may once again offer opportunity. As with most commodity investments, timing is everything. But if nuclear energy really is poised to regain its place in the U.S. energy mix, this could be the early innings of a much larger story.