This week, US Energy Secretary Chris Wright emphasized the need to boost the country’s strategic uranium reserve to mitigate reliance on Russian supplies and bolster the long-term viability of nuclear power generation. This announcement highlights a looming uranium supply deficit that could impact the United States’ energy security.
Uranium is a critical component for nuclear energy, providing a reliable source of baseload power. The US currently requires approximately 32 million pounds of uranium annually to fuel its nuclear reactors. However, the nation’s production capabilities are limited, with Energy Fuels’ White Mesa Mill in Utah being the only operational uranium mill in the country.
Russia currently supplies about 25% of the enriched uranium needed by America’s 94 nuclear reactors, which collectively generate around 20% of the country’s electricity. In 2024, the US purchased 50 million pounds of uranium but produced only 677,000 pounds, according to the Energy Information Administration. This production accounts for just over 1% of the country’s needs, underscoring the geopolitical complexities surrounding US uranium supply.
The Manhattan Project Parallel
The drive to secure domestic uranium supply echoes the urgency of the 1940s Manhattan Project, a secret US-led initiative during World War II aimed at developing nuclear capabilities before foreign adversaries could. Today, the stakes are different but no less significant as the US seeks to maintain energy independence and security in an increasingly complex global landscape.
Largest Mineable Uranium Deposit in the US
US uranium miner and nuclear reactor technology developer Eagle Energy Metals recently announced plans to go public through a merger with Spring Valley Acquisition Corp., a blank-check company. This strategic move comes amid growing energy demands driven by technological advancements in artificial intelligence and other sectors.
The merger values the combined company at a pro-forma equity of $312 million. Eagle Energy Metals, founded in late 2023, aligns with the American Energy Independence National Security Narrative. CEO Mark Mukhija highlighted the company’s acquisition of the Aurora uranium project, which is considered the largest mineable uranium deposit in the US. The project spans the Oregon-Nevada border, with significant resources on both sides.
The Aurora deposit boasts a near-surface resource of over 50 million pounds of uranium, with more than 500 exploratory holes drilled to date.
Adjacent to Aurora is the Cordex deposit, offering potential for additional uranium resources, according to Mukhija.
Rising Demand and Technological Innovations
The surge in power demand, driven by advancements in artificial intelligence, cryptocurrencies, and quantum computing, has prompted a reevaluation of energy strategies. Mukhija noted, “After two decades of relatively flat power demand, we’re at an inflection point where energy usage could triple by 2050.”
Nuclear energy, he argues, is the most viable solution to meet this demand, offering consistent baseload power compared to intermittent sources like wind and solar. Eagle Energy Metals is also pioneering small modular reactor (SMR) technology, developed at the University of New Mexico. These advanced reactors are smaller, more flexible, and can be deployed in various settings, including disaster relief areas and military outposts.
“Our micro modular reactor can deliver up to 3.3 megawatts of power,” Mukhija explained, emphasizing the reactors’ portability and safety.
Strategic Implications and Future Prospects
The push to expand critical mineral production in the US aligns with executive orders aiming to quadruple the country’s nuclear energy capacity by 2050. This expansion would necessitate increasing uranium needs from 50 million to 200 million pounds, not accounting for similar developments in China.
“AI cannot be decoupled from national defense – power is the bottleneck. We’re in project Manhattan 2.0,” Mukhija stated. “We need to get as much power generation as possible.”
Eagle Energy Metals is committed to ensuring that the US has sufficient uranium and fuel for its reactors, aligning with national policy initiatives. The company is currently focused on baseline environmental and cultural studies and plans to commence a prefeasibility study in the second half of 2026. This year, it completed a SK1300 technical report summary on the Aurora asset, marking a significant step forward in securing the nation’s energy future.
