Investing.com — US nuclear power expects significant growth, with two major themes said to be driving the industry’s future: domestic capacity expansion and the localization of enriched uranium.
According to Daiwa Capital Markets, these developments could open up billions in new markets while reshaping the energy landscape.
Nuclear equipment
Daiwa explained in its research note to clients that the US Department of Energy (DOE) aims to add 35 gigawatts (GW) of new nuclear power by 2035, a 36% increase from 2023 levels. This is said to be part of the wider target of tripling by 2050, as announced during COP29.
The company notes that achieving this milestone will require 15 GW of annual additions from 2040 onwards, contributing to net-zero emissions targets. Daiwa estimates that this growth path opens up a $101 billion market for nuclear power plant manufacturers.
Daiwa believes that “it’s a long-term growth story [is] confirmed with [the] US targets 35GW additional capacity by 2035; a USD101bn market to be opened up.”
They add that companies like GEV, BWXT, and Fluor (NYSE: ) are positioned to benefit, given the estimated capital cost of $6,041 per kilowatt.
Enriched uranium
The company notes that Russia’s recent ban on the export of enriched uranium to the US has strengthened efforts to develop nuclear fuel locally.
Russia is said to currently account for 44% of the world’s uranium enrichment capacity. The US ban on Russian uranium, implemented in May, leaves a 27% shortfall in domestically enriched uranium demand.
Daiwa anticipates a $443 million market for domestic consultants, highlighting companies such as Centrus Energy (NYSE:) and Honeywell (NASDAQ:) as beneficiaries.
Although uranium oxide (U3O8) supplies remain tight, covering 2.9 years of demand, “The localization of nuclear fuel is almost now at the forefront,” Daiwa said. Enrichment growth will outpace benefits for miners in the near term.
Daiwa sees the US nuclear revival as part of a global trend, with similar optimism about China’s nuclear ambitions, which reflects a strong view of the sector.
