US expands domestic uranium enrichment with new $1.07 billion deal

Centrus Energy has secured a contract worth up to $1.07 billion from the U.S. Department of Energy to accelerate domestic production of High-Assay, Low-Enriched Uranium (HALEU), marking a major step in the country’s effort to rebuild its uranium enrichment industry. The agreement includes a $900 million task order for commercial-scale enrichment infrastructure. It also gives the Department of Energy options to purchase up to $170 million worth of HALEU.

The award shifts Centrus from a government-backed demonstration program to commercial production. The company expects its first new large-scale enrichment capacity to enter service in 2029, with plans to operate its existing HALEU cascade commercially in the meantime to supply early customer demand.

Commercial production begins

Centrus completed production under its demonstration contract ahead of schedule, finishing the final 1,984 pounds of HALEU uranium hexafluoride (UF6) in mid-June. The milestone brought total output under the program to more than 4,189 pounds.

The Department of Energy also extended the previous demonstration agreement for three months through a separate $15 million contract covering HALEU storage as both sides finalize arrangements for the commercial transition.

Centrus President and CEO Amir Vexler said the agreement marks a key step in the company’s transition from a technology demonstration program to commercial-scale HALEU production. He added that federal funding would help attract billions of dollars in private investment. Customer commitments and other non-debt financing would provide additional support as Centrus works to restore large-scale uranium enrichment capacity in the United States.

Expansion targets 2029

Centrus plans to build commercial HALEU production capacity at its American Centrifuge Plant in Piketon, Ohio. The first phase aims to produce 12 metric tons of HALEU annually while also adding enough conventional low-enriched uranium (LEU) capacity to address the company’s existing $2.4 billion LEU order backlog.

Executives said future expansion will depend on customer demand and available funding. The modular approach allows Centrus to increase both HALEU and LEU production over time as the market grows. The company also expects the initial deployment to reduce centrifuge manufacturing costs through higher production volumes.

Until the larger facility comes online, Centrus intends to operate its current enrichment cascade commercially. It is working with the Department of Energy on agreements that include a long-term lease extension for the Piketon site.

Thousands of jobs planned

The expansion project is expected to create roughly 1,000 construction jobs and 300 permanent operating positions in Ohio while retaining 150 existing jobs at the Piketon facility. Centrus also expects to add about 430 jobs at its centrifuge manufacturing plant in Oak Ridge, Tennessee. Hundreds of additional positions could emerge across its supplier network. Thousands of indirect jobs could also follow across the country.

The broader expansion relies on both federal backing and private capital. National security programs will provide one source of funding. Foreign direct investment will provide another. Customer prepayments will also support the project. Separate commercial uranium supply agreements are expected to generate additional capital. Centrus believes that funding model will support its multibillion-dollar effort to restore domestic enrichment capability as demand for advanced nuclear fuel grows across the United States.