Uranium Market Gains Momentum on Nuclear Revival Hopes

Rising Nuclear Ambitions Fuel Uranium Demand

Renewed interest in nuclear power has sparked a bullish turn in the uranium market, with demand projected to surge as new reactor builds accelerate. According to the World Nuclear Association, uranium demand for reactors is expected to climb from around 86,000 tonnes by 2030 to 150,000 tonnes by 2040. At the same time, current mine output is expected to halve in the same period due to deposit depletion, creating a steep supply gap.

Ramp-Up of Russia’s Uranium Production

Russia, which holds approximately 44% of global uranium enrichment capacity, is moving to boost production. Rosatom has initiated development of the Shirondukuyskoye deposit in eastern Siberia, aiming for first output in 2028. The site is estimated to contain 8,000 tonnes of uranium and 40,000 tonnes of molybdenum. Russia aims to raise its domestic uranium output from 2,796 tonnes in 2024 to 4,000 tonnes by 2030, supported by nearby Argunskoye and Zherlovoye deposits.

Lithium’s Supply Crunch Meets Nuclear Energy Resurgence

The uranium market’s rally comes against a backdrop of tightening supply and growing interest from both geopolitical and climate-conscious sectors. Exploration is lagging production, and bringing new mines online typically takes 10 to 20 years. Meanwhile, geopolitical fragilities, such as production cuts in Kazakhstan and reliance on enrichment assets, are adding to upward price pressures.

Investors Pivot Toward Uranium Stocks and ETFs

Investor interest is mounting in uranium-related equities and ETFs. ETFs such as NLR (VanEck Uranium & Nuclear) and URA (Global X Uranium) surged between 13% and 14% in a single month, buoyed by tech giants like Amazon, Google, and Microsoft investing in nuclear power to support AI data centres. Despite elevated spot prices, uranium remains a moderate share of reactor costs, estimated at 5–10%, which supports the broader case for nuclear energy.

In summary, uranium markets are gaining strength, driven by global nuclear expansion plans, supply constraints, and investor enthusiasm for the energy transition. The core theme: constrained uranium supply against surging demand is creating a ripe environment for price appreciation and investment opportunities.