The EIA reported last week that U.S. uranium production has rebounded, tripling in 2025 to about 2.1 million pounds vs. about 0.7 million pounds in 2024. This is still far below the 2014 peak of nearly 5 million pounds.
Uranium is produced as triuranium octoxide (U3O8) concentrate, also known as “yellowcake” due to its color.
It is the main component of nuclear fuel. Uranium
ore is mined, then goes through a milling process to produce yellowcake. The
yellowcake is then converted into uranium hexafluoride, UF6. After this it is
made into pellets that are assembled into fuel rods for reactors.
As the graphs below, made
from EIA data, show, drilling footage and number of holes drill for both
exploratory and development drilling is up. Exploratory drilling seeks new
sources of uranium, while development drilling seeks better assessment of known
sources.
As the graph below shows, the
U.S. purchases most of its uranium needed for nuclear reactors from Canada,
Kazakhstan, and Australia, with domestic production coming in a distant fourth.
Oil Price US summarized the
EIA data and data on global stocks and forecasts and noted that:
“Uranium of U.S. origin accounted for 7% of deliveries,
while Canada, Kazakhstan and Australia supplied a combined 75%.”
“Six facilities produced uranium during the second
quarter of 2026: four in Wyoming, one in Texas and one in Utah. Five additional
in-situ recovery plants were on standby at the end of last year, while seven
proposed plants had combined planned capacity of 10.5 million pounds.”
“Overall, U.S. utilities expect to require as much as
360 million pounds of uranium through 2035. Existing contracts provided for
maximum deliveries of 174 million pounds, leaving 186 million pounds of
anticipated requirements without contracts. Utilities already owned 118 million
pounds in commercial inventories at the end of 2025, which is enough volume for
three years of reactor loading at the 2025 rate. The inventories allow
utilities to defer part of their contracting.”
“Global reactor requirements also exceeded primary mine
production last year, with inventories and other secondary supplies covering
the difference. Mines produced about 60,000 tonnes, compared with reactor
requirements of approximately 70,000 tonnes. The World Nuclear Association
estimates that annual requirements would approach 200,000 tonnes by 2040 under
its upper nuclear-growth scenario. But that’s only if reactors are completed on
schedule.”
The article also explains why
uranium stock prices are what they are. Its more expensive on the spot market
but the vast majority is purchased at lower rates through long-term contracts.
“Most uranium does not sell at the current spot price.
Long-term contracts accounted for 87% of the uranium delivered to U.S.
operators in 2025, at an average price of $55.91 per pound, while spot
purchases averaged $76.01.”
“Producers receive prices set by agreements that may
have been signed years earlier and can include fixed prices, market
adjustments, floors and ceilings. Because of that, higher spot prices only
reach earnings gradually.”
To summarize the issue:
Despite tripling its production this year, the U.S. still only produces 7% of
its uranium domestically. Fortunately, it gets much of the rest from friendly
countries. Reactor demand is set to rise considerably in the coming decade, so
uranium production will likely rise as well.
References:
U.S.
uranium production more than tripled in 2025 and was the highest since 2017.
EIA. August 28, 2026. U.S.
uranium production more than tripled in 2025 and was the highest since 2017 -
U.S. Energy Information Administration (EIA)
Why
uranium stocks are falling as US production triples. Charles Kennedy. September
2, 2026. Why
uranium stocks are falling as US production triples
Domestic
Uranium Production Report – Annual. EIA. Domestic
Uranium Production Report - Annual - U.S. Energy Information Administration
(EIA)
Yellowcake.
Energy Education. Yellowcake
- Energy Education
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