Uranium prices surge as nuclear expansion heightens demand and strains supply

Spot uranium prices broke the $100 per pound barrier in January 2024, the highest level in 17 years, before easing to the $80‑90 range. Long‑term contract prices remain well above historic levels, reflecting a structural shift in the market.

Thirty‑one nuclear reactors are currently under construction worldwide, led by China with 23 units, while more than 60 countries are discussing new or expanded nuclear programmes. At COP28, 22 nations pledged to triple global nuclear capacity by 2050. Each conventional reactor consumes 150‑200 tonnes of uranium annually, and the rise of small modular reactors adds further demand.

Supply is lagging: Kazakhstan provides about 43 % of global uranium, Canada around 15 %, with Namibia and Uzbekistan completing the top five producers. The existing pipeline of new mines is thin, and developing a mine takes 10‑15 years. Inventories in U.S. and Western European utilities have fallen to multi‑decade lows. The World Nuclear Association projects demand could reach 130 000 tonnes per year by 2040, roughly double current production of about 65 000 tonnes, underscoring a looming supply deficit.