The U.S. Department of Energy (DOE) has taken a significant step toward revitalizing domestic uranium enrichment capacity, issuing its first production-scale task orders under a $2.7-billion program launched in 2024. The awards, totaling $2.7 billion, have been granted to Centrus Energy Corp., General Matter, and Orano Federal Services. Each company will receive $900 million to expand domestic production of conventional low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU) over the next decade. This move is part of a broader federal effort, spanning multiple administrations, to establish a stable, nationally rooted uranium supply and address fuel-security risks for both existing and advanced nuclear reactors.
The task orders announced on Jan. 5 are the result of a competitive vendor pool established under Task Order 1 of the DOE’s domestic enrichment program. This initial phase pre-qualified suppliers and funded proposal development. Following a request for proposals in mid-2024, the DOE selected six companies to compete for LEU enrichment work and four for HALEU enrichment work. Each selected vendor received $2 million to prepare bids for future production-scale task orders. The DOE’s Task Order 2 selections, unveiled on Jan. 5, finalized $900 million task orders with Orano Federal Services for LEU expansion and with American Centrifuge Operating and General Matter for HALEU expansion. All previously selected vendors remain eligible to compete for future task orders, pending appropriations.
The DOE also awarded $28 million to Global Laser Enrichment under its HALEU Technologies program to advance next-generation uranium enrichment technology. This funding will support demonstration-scale projects and earlier-stage applied research and development, focusing on improving efficiency, reducing costs, or expanding production options for HALEU.
Orano’s $900 million task order will accelerate the development of Project IKE, a commercial uranium enrichment facility in Oak Ridge, Tennessee. This project underpins a roughly $5 billion investment in a large U.S. centrifuge plant designed to supply LEU to the existing reactor fleet and potentially LEU+ and HALEU for advanced reactor designs. Project IKE will use commercially proven centrifuge technology and modular construction to scale output over time. Orano anticipates initial LEU production in 2031, subject to Nuclear Regulatory Commission (NRC) approval and finalization of contractual arrangements. The project is expected to create more than 1,000 construction jobs and roughly 300 permanent positions once operational.
Centrus Energy, through its American Centrifuge Operating subsidiary, will likely expand its ongoing HALEU production at the American Centrifuge Plant in Piketon, Ohio. The company has already produced and delivered just over 920 kilograms of HALEU uranium hexafluoride (UF₆) to the DOE. Centrus continues to perform under the DOE’s HALEU Operation Contract, which provides for at least one additional year of HALEU output, subject to DOE option exercise and appropriations. The company has outlined a multi-billion-dollar expansion of enrichment capacity in southern Ohio, supported by the restart of domestic centrifuge manufacturing and new site infrastructure.
These developments mark a significant milestone in the DOE’s efforts to rebuild U.S. uranium enrichment capacity and reduce reliance on imported services. The awards are expected to shape the future of the nuclear energy sector by fostering a more secure and stable domestic uranium supply chain. The DOE’s competitive contracting framework and the statutory ban on Russian enriched uranium imports enacted in May 2024 further underscore the strategic importance of these initiatives. As the nuclear energy sector evolves, these investments could play a crucial role in supporting both existing and advanced reactor fleets, ensuring a reliable and secure fuel supply for the future.