Domestic uranium market will grow between 2023 and 2024

Uranium miners in the United States produced more than 82,000 pounds of uranium concentrate in the first quarter of 2024, more than in all of 2023. Domestic uranium mines produced 50,000 pounds of triuranium octoxide (U3O8), also called uranium concentrate, in 2023, a significant decrease from the 194,000 pounds produced in 2022.

Production declined in 2023 because the United States’ only operating conventional uranium mill, the White Mesa Mill in Utah, did not produce. During 2023, uranium concentrate production occurred at five in-situ recovery facilities, four in Nebraska and one in Wyoming.

Other signs point to increased uranium mining in the United States. The number of exploration and development holes dug—a precursor to uranium production—jumped from 260 holes in 2021 to 1,008 holes in 2022 and to 1,930 holes in 2023. The distance drilled per well, another precursor, increased from 123,000 feet in 2021 to 534,000 feet in 2022 and then to just over one million feet drilled in 2023. The number of full-time employees engaged in uranium exploration activities also rose from 42 employees in 2021 to 110 employees in 2023.

In 2023, owners and operators of U.S. civilian nuclear power reactors purchased 51.6 million pounds of uranium concentrate, a 27% increase from 2022. These purchases were made at a total weighted-average price of $43.80 per pound, an increase of 12% from a $39.08 per pound average price in 2022.

Uranium prices have generally risen over the last five years as a result of several factors. Worldwide supply and demand have balanced following a supply surplus after the Fukushima accident in 2011. Russia’s invasion of Ukraine has caused some countries to rethink a move away from nuclear energy, and we expect uranium consumption to increase from the nearly 60 reactors that are currently under construction around the world.

Most uranium purchased in 2023 in the United States was of foreign origin. More was from Canada than any other country, 27%. Uranium from Australia and Kazakhstan both accounted for 22% of purchases. Uranium from Russia accounted for 12%, and 10% was from Uzbekistan. Domestic supply accounted for 5% of total purchases in 2023, the same as in 2022.

The origin of uranium used in U.S. reactors will likely change in the coming years. In May, the United States banned imports of uranium products from Russia beginning in August, although companies may apply for waivers through January 1, 2028.

The passage of the ban on uranium imports from Russia also unlocks $2.72 billion in funding to build out the domestic nuclear fuel supply chain and support new and existing nuclear power plant operators.