Sprott Uranium Watch

The uranium markets experienced volatility in January, with prices dipping despite strong miner performance. Key factors included the emergence of the Chinese AI model DeepSeek and the return of the Trump administration.

The company behind Greenland’s Kvanefjeld rare earth deposit is hopeful that a new government will repeal a ban on uranium mining after next month’s election, potentially revitalizing one of the world's largest rare earth projects. Despite local protests and environmental concerns, CEO Daniel Mamadou remains optimistic about theproject's economic impact and its ability to boost Greenland's fishing-dependent economy.

The U.S. Geological Survey dropped uranium from its critical minerals list in 2022, but U.S. President Donald Trump wants it reconsidered, as its inclusion could unlock federal funds and faster permitting for domestic projects. Despite a volatile price rally in 2024, uranium's demand is increasing due to the global resurgence of nuclear power, making its classification as a critical mineral more pressing for national security and energy needs.

What forces will shape the markets in critical materials and precious metals in 2025 and beyond? We identify 10 key macro and market themes investors should watch in the coming year.

Sweden is building a first-of-its-kind small modular nuclear reactor (SMR) to perfect a new design for clean energy production. This test reactor paves the way for commercially available SMRs by the end of the decade, aiming to be compact, corrosion-resistant, and safe.

Chris Wright, President-elect Donald Trump's pick to head the U.S. Energy Department, told U.S. senators in his confirmation hearing on Wednesday his first priority is expanding domestic energy production including liquefied natural gas and nuclear power.

Power company Constellation, which operates the largest fleet of commercial nuclear power plants in the U.S., has been awarded more than $1 billion in combined contracts by the U.S. General Services Administration (GSA) to supply power to more than 13 government agencies. The deal is the biggest energy purchase in the history of the GSA, which constructs and manages federal buildings, and is among the first major climate-focused energy agreement by the U.S. government to include electricity generated from existing nuclear reactors.

Microsoft is planning to invest about $80 billion in fiscal 2025 on developing data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company said in a blog post on Friday.

Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across sectors seek to integrate artificial intelligence into their products and services.

Steve Schoffstall, Director, ETF Product Management: "We believe uranium mining equities are poised for growth as demand for nuclear power increases, driven by AI data center needs and electricity demand. Geopolitical shifts, such as Russia’s export restrictions, and global pledges to triple nuclear capacity by 2050 highlight supply chain importance. This creates a compelling case for uranium miners, which are supported by strong market fundamentals."

Tech leaders are exploring nuclear power as a solution to the massive energy needs of their data centers, sustainability challenges and the growing demands of their AI initiatives. SMRs, a new type of nuclear reactor, are gaining attention for their ability to provide round-the-clock power with minimal emissions. As some of the largest energy users, major tech companies like Microsoft, Amazon, Google and Meta are investing in these reactors, which could play a key role in global energy transformation.

Mongolia and France’s Orano Mining have signed a preliminary agreement to develop a $1.6 billion uranium mining project, with first production expected in 2028 and peak output by 2044. This marks a significant step in Mongolia’s efforts to revive uranium mining, which has been dormant since 1995, and aligns with global efforts to reduce reliance on Russian nuclear fuel. The project could boost Mongolia’s mining sector, which already accounts for 25% of GDP and 90% of exports, while providing inward investment and employment opportunities.

Unlock the power of real assets investing with Sprott’s Masterclass video. Dive into gold, silver, copper and uranium with industry experts Ed Coyne, Ryan McIntyre and Steve Schoffstall as they reveal strategies to navigate global uncertainties and identify opportunities. Discover how to leverage precious metals and critical materials to potentially build a resilient, future-ready portfolio.

Russia is temporarily limiting exports of enriched uranium to the U.S., creating potential supply risks to utilities operating American reactors that generate almost a fifth of the nation’s electricity. The Russian government didn’t provide details of the restrictions or their duration in a Friday statement on Telegram. Utilities tend to make purchases well in advance, so any impact is unlikely to be immediate.

Russia has imposed restrictions on the export of enriched uranium to the United States, the government said on Friday, creating supply risks for U.S. nuclear power plants which last year imported a quarter of their enriched uranium from the country.

Nuclear power is creating a buzz in media circles. Thalia Hayden of @etfguide talks with John Ciampaglia about the powerful comeback of nuclear energy and how tech giants are embracing nuclear energy for data centers.

With the electricity consumption of data centres, artificial intelligence (AI) and cryptocurrencies set to grow in the coming years, major tech companies are actively looking to advanced nuclear technologies such as small modular reactors (SMRs) to provide clean, reliable and flexible power. This could result in a new pathway for the commercialization of SMRs and other advanced reactors in markets where they are yet to emerge.

The concrete cooling towers that rise from a sliver of land south of Pennsylvania’s capital became symbols nearly a half-century ago of the risks of nuclear energy. Now, a plan to restart one of the two reactors at Three Mile Island is at the leading edge of efforts to greatly expand the country’s reliance on atomic fission to meet the growing power demands of homes, businesses and data centers.

Big tech is turning to nuclear energy to fuel the massive power needs of AI-driven data centers. They're striking bold deals to develop small modular reactors (SMRs), sparking a surge in uranium demand and helping to support clean energy innovation. At the same time, global uranium supply remains inadequate to meet both current and future reactor requirements.

Amazon Web Services is investing more than $500 million in nuclear power, announcing three projects from Virginia to Washington state. 

Technology companies are increasingly looking to nuclear power plants to provide the emissions-free electricity needed to run artificial intelligence and other businesses. Microsoft, Google and Amazon have recently struck deals with operators and developers of nuclear power plants to fuel the boom in data centers, which provide computing services to businesses large and small.

The tech giant (Google) said it will purchase power from a fleet of SMRs made by Kairos Power. Google said purchasing from multiple SMRs sends an “important demand signal to the market,” while making a long-term investment to accelerate commercialization.

Uranium continues to rise after last month’s hint from Russia president Vladimir Putin that he might apply an embargo on exports to the west.

That suggestion jolted the uranium market which had been sliding lower after hitting an 18-year high of $106 a pound in February.

Data centers are expected to consume more and more electricity thanks to growth in artificial intelligence and cryptocurrency mining — and nuclear energy and uranium appear a good way for investors to gain exposure to this rise in power demand.

The Palisades nuclear plant in Michigan has closed a $1.5 billion loan to support the first reactor restart in U.S. history, the Department of Energy announced Monday.

Palisades’ owner, Holtec International, hopes to restart the plant in the fourth quarter of 2025, subject to approval by the U.S. Nuclear Regulatory Commission. Holtec is a privately held nuclear technology company headquartered in Jupiter, Florida.

The Palisades nuclear plant in Michigan just closed a $1.5B federal loan to reopen, the latest in a push to restart retired nuclear plants amid rising power demand.

The uranium market has faced short-term volatility, including price declines driven by geopolitical tensions and economic concerns. Despite these challenges, the long-term outlook remains strong. Supply uncertainties from key producers like Kazakhstan and Russia are contributing to this volatility, but the fundamental supply-demand imbalance suggests further growth potential.

Google’s top executive confirmed the company is working on large-scale data centers that would use more than 1 GW of power. Sundar Pichai, CEO of Google and Alphabet, in a speech last week at Carnegie Mellon University in Pittsburgh said small modular nuclear reactors (SMRs) could possibly be used to generate the needed electricity.

For companies like Microsoft, which has ambitions to eliminate its carbon emissions by 2030, growth in cloud computing and AI pose a particular challenge: The firm’s carbon emissions have ballooned some 40% over the last four years, largely a result of expanding data center operations. Google’s carbon emissions have grown, too, some 48% in the last five years. (Amazon says all of its data centers’ energy use is matched by an equivalent amount of renewable power.)

Major financial institutions now recognize the key role that nuclear energy must play in the global net zero energy transition and that improving access to financing can help unlock nuclear energy’s potential.

On the sidelines of Climate Week in New York City, major banks, government representatives and industry executives met at the Financing the Tripling of Nuclear Energy – Leadership Event, followed by the Net Zero Nuclear Forum, hosted in the Rainbow Room, Rockefeller Center. The nations endorsing the Declaration to Triple Nuclear Energy launched at COP28 in 2023 were joined by 14 financial institutions that expressed support for the call to action to triple global nuclear energy capacity by 2050.

Big tech has led to a sudden surge in U.S. electricity demand for data centers needed to expand technologies like artificial intelligence and cloud computing. Nuclear energy, which is nearly carbon-free and broadly considered more reliable than energy sources like solar and wind, has become a popular option for technology companies with uninterrupted power needs and climate pledges.

France's state-owned nuclear fuel company Orano has selected Oak Ridge, Tennessee as a preferred site to build a multi-billion dollar U.S. uranium enrichment plant, Tennessee and Orano officials said on Wednesday. 

The civilian nuclear sector is undergoing a major transformation, driven by decarbonization, geopolitical tensions, and innovative technologies reshaping energy security.

John Ciampaglia, CEO of Sprott Asset Management, joins Resource Talks for a conversation about the new uranium report, the uranium spot market shenanigans, the challenges and opportunities of investing in uranium, and an in-depth overview of the copper opportunity.

John Ciampaglia, CEO of Sprott Asset Management, and Jimmy Connor discuss gold investing on the back of higher gold prices and uranium investing on the news of lower production from Kazatoprom.

As demand for clean power for data centers continues to grow, the issue of proximity to power has also become a key theme. Britt Gitt from Oklo joins Sprott Radio to walk us through how clean, safe nuclear power can be located where it’s needed in the future.

While global nuclear power capacity has remained at a consistent level over the past decade, newly released data from the International Atomic Energy Agency (IAEA) suggests that more than two-thirds of the world’s nuclear reactors are more than 30 years old, and nearly a third have been in operation for 40 years.

China approved 11 nuclear reactors across five sites on Monday, a record amount of permits as the government leans even more heavily on atomic energy to support its push to cut emissions. The total investment for all 11 units will be at least 220 billion yuan ($31 billion) with construction taking about five years.

The uranium spot price has remained range-bound between $85 and $95 per pound, and ended the first half at $85.34 (June 30, 2024). Uranium miners fell in June, but bounced back in early July, outperforming the commodity YTD. Over the longer term, physical uranium and uranium miners have demonstrated significant outperformance against broad asset classes, particularly other commodities.

Federal and state policymakers have taken significant steps in the first half of 2024 to support nuclear energy as new opportunities emerge with the rising power needs of data centers.

The United States needs to build a significant number of nuclear plants to supply surging energy demand while also meeting climate goals, the CEO of Southern Company said at an event on Thursday.

The US is bidding to eventually buy up to $2.7 billion of domestically-supplied enriched uranium, in an effort to boost the supply chain for the nuclear reactor fuel and steer the country away from buying it from Russia, the Energy Department said on Thursday.

Thus far in 2024, the uranium spot price has stabilized between $85 to $95 per pound after a significant 88.54% increase in 2023. This phase indicates a healthy correction within a bullish market cycle. Uranium miners have shown improved performance, catching up to gains in the spot price. 

Anticipated Funding Aims to Promote Advanced Reactor Orderbook and Prepare Domestic Nuclear Industry for Deployments

The White House has unveiled significant measures to bolster the development of new nuclear power plants in the US as it aims for a carbon-free power sector by 2035.

The rise of AI and data centers is likely to significantly increase global electricity demand, creating challenges for power grids but also opportunities for stable, clean energy sources like nuclear power. AI data centers are also likely to support increased demand for copper-intensive electrical equipment.

Steven Schoffstall, Director, ETF Product Management: Rising global commitments to nuclear energy are helping to make uranium a compelling investment. While spot uranium prices have come down slightly after a significant rise, we believe there is room for growth given that demand is expected to climb as the need for low-carbon energy sources intensifies. We believe that uranium miners can add growth potential and diversification to investor portfolios.

John Ciampaglia, CEO of Sprott Asset Management, brings his unique perspective on growing institutional investor interest in gold, silver, uranium, copper and other commodities. Ciampaglia thinks we're on the precipice of a commodities supercycle, and big money is starting to flock to the sector in search of outsized gains.

Jacob White, CFA: The uranium market showed mixed performance in March: the spot uranium price fell but miners' stocks rose due to long-term positive outlook for uranium demand. With no meaningful new supply on the horizon for three to five years, we believe the uranium bull market has further room to run.

The U.S. Department of Energy’s (DOE’s) Loan Programs Office (LPO) announced a conditional commitment of up to $1.52 billion for a loan guarantee to Holtec Palisades LLC to finance the restoration and resumption of service of the Palisades Power Plant, an 800-MW nuclear generating station in Covert Township, Michigan

Jacob White, CFA: Uranium markets pulled back in February after a rapid rise—in our view, this is a healthy pause in the ongoing uranium bull market. Announcements from Kazatomprom and Cameco underscored the uranium markets' structural supply deficit, while global governments continued to champion the benefits of nuclear energy.

The U.S. House of Representatives recently passed a ban on imports of Russian uranium. The bill must pass the Senate before becoming law. 

John Ciampaglia, CEO of Sprott Asset Management, joins Thalia Hayden on Sprott’s new video series, Shifting Energy. They discuss surging uranium prices, the latest nuclear renaissance and potential investment opportunities. The series was created in partnership with ETF Guide to keep viewers on top of energy transition investment opportunities. 

Per Jander from WMC is back for Part 2 of our All Eyes on Uranium series. Per and host Ed Coyne discuss the recent production guidance announcements from Kazatomprom and Cameco and the overarching issue of the structural supply deficit in uranium.

Jacob White, CFA: Uranium price surged 11% in January to $101 per pound, fueled in part by Kazatomprom's cut in guidance for 2024 production by ~14%. Junior uranium miners were top performers for the month, climbing 18.78%. Supply uncertainties continue to dominate markets, given the situation in Niger and possible bans on Russian uranium. 

Whitney George, CEO of Sprott, joined Evan Lorenz to discuss Sprott's growth and the increasing demand for critical materials including uranium. George: "The world is going to wake up and discover that there are huge deficits in things like copper, lithium and nickel. They're volatile, but as contrarians, we have the ability to move in when others are going the other way." 

The Biden administration is poised to loan US$1.5 billion to restart a closed Michigan nuclear power plant, paving the way for a shuttered reactor to reopen in the U.S. for the first time.

CEO John Ciampaglia joins James Connor at the Bloor Street Capital Virtual Uranium Conference to examine the growing interest in the uranium market, the current state of the spot and contracting markets and Sprott’s movement in the space. 

The Ontario government announced Tuesday that it plans to refurbish the half-century old Pickering nuclear generating station, keeping the plant operating for at least another 30 years.

John Ciampaglia, CEO of Sprott Asset Management, sits down with Andrew Bell of BNN Bloomberg to discuss the uranium market and Sprott’s growth in the space. Campaglia: "We’ve been very active in educating the market and investors about the uranium thesis since we acquired the Uranium Participation Corporation in July of 2021."

The uranium renaissance has a slight hitch: the world’s largest producer of the yellowcake is staring at a production snag over the next two years.

And that’s about to send uranium prices, already at 16-year highs, on another rally.

Recent surges in uranium spot prices have market participants looking to new production to help mitigate the growing supply-demand imbalance against the backdrop of heightened geopolitical tension.

A product has just gone up in price by 90% in 12 months. It now costs more than it has in 16 years. Most people would think twice about diving into a market like that.

Kazatomprom, the world’s biggest uranium miner, warned that it’s likely to fall short of its production targets over the next two years, adding another risk to supply as demand for the nuclear fuel rebounds.

Nuclear waste is not something to be feared. The care with which it is handled and stored contributes to the fact that nuclear power is one of the safest forms of baseload energy generation known to humanity. In this video, we dispel the many fears and concerns about spent nuclear fuel. 

The government is exploring plans to build a new large-scale nuclear plant, despite concerns about delays to existing projects.

The UK will become the first country in Europe to launch a high-tech HALEU nuclear fuel programme, strengthening supply for new nuclear projects and driving Putin further out of global energy markets. 

The landmark £300 million investment is part of plans to help deliver up to 24GW of clean, reliable nuclear power by 2050 - a quarter of the UK’s electricity needs. 

France requires more than the six new nuclear plants currently planned and possibly needs to build more than 14 new plants, its energy minister said, just days before a parliamentary debate begins on the issue.

2023 provided the long-awaited inflection point for the uranium contracting cycle whereby we have finally achieved replacement rate levels. We believe the era of uranium inventory destocking and utility complacency is over. Long-term security of supply concerns, fanned by lingering geopolitical risks and the challenges of expanding primary production, will be the key themes to watch in 2024 and beyond.

Paul Wong, CFA & Jacob White, CFA: What forces are likely to drive energy transition materials and precious metals markets in 2024 and over the next decade? We discuss 10 critical macroeconomic and market-specific themes ranging from deglobalization and climate policy to the new commodity supercycle and a potential silver price breakout.