Centrus Energy Secures $1.8B in Uranium Supply Commitments

Centrus Energy Corp. announces a decade-long deal with Korea Hydro & Nuclear Power, marking a significant milestone in their nuclear fuel supply strategy, according to a recent report.

Date: 11-09-2024

AI Rating: 7

Centrus Energy Corp. (LEU) has announced a crucial agreement with Korea Hydro & Nuclear Power (KHNP), securing a contingent supply commitment aimed at bolstering the construction of new uranium enrichment capacity at their facility in Piketon, Ohio. This deal is noteworthy as it covers a decade-long commitment for Low-Enriched Uranium, which is essential for fueling Korea's extensive fleet of reactors.

Importantly, this contract contributes to a total of $1.8 billion in contingent sales commitments that Centrus has secured to date, which includes agreements with other customers. This substantial figure indicates strong demand for nuclear fuel and reflects positively on Centrus' position in the market as it seeks to re-establish significant U.S.-owned uranium enrichment capabilities.

CEO Amir Vexler’s statement emphasizes the strategic nature of this supply commitment, positioning it as a vital building block for developing a public-private partnership. If successfully executed, this could pave the way for increased operational capacity for Centrus, potentially enhancing its revenue streams and market presence.

Stocks: LEU