Origin of U3O8 could change after Biden administration legislation
US nuclear generators used 32 million pounds of imported uranium concentrate (U3O8) and only 0.05 million pounds of domestically produced U3O8 in 2023, according to latest data from the US Energy Information Administration (EIA).
Imports accounted for 99% of the U3O8 used in 2023 to make nuclear fuel in the US, according to the EIA, a federal agency responsible for energy data.
Foreign producers predominantly supply the US front-end nuclear fuel cycle, but federal policies have been implemented recently to improve the domestic US nuclear fuel supply chain.
In June 2024, the Biden administration issued a request for proposals to buy up to $2.7bn (€2.5bn) of enriched uranium from domestic sources in an effort to boost supplies of the nuclear reactor fuel and move the country away from buying it from Russia.
The Department of Energy said the move would help spur the build-out of uranium enrichment capacity in the US, promote diversity in the market and “provide a reliable supply of commercial nuclear fuel to support the energy security and resilience of the American people and domestic industries, free from Russian influence”.
According to the EIA, uranium production in the US peaked in 1980 and uranium purchases by US nuclear power plant operators from domestic suppliers peaked in 1981. Since 1992, most uranium purchased by US nuclear power plant operators was imported.
U3O8 is chemically extracted from uranium ore that has been mined and milled. The fine powder is packaged in steel drums and later enriched and processed further to prepare it for use as fuel in nuclear reactors.
US production of U3O8 in the third quarter of 2024 totalled 121,296 pounds, a 24% increase from production of 97,709 pounds in the second quarter. Production in the third quarter occurred at five US facilities: three in Wyoming (Nicholas Ranch, Lost Creek and Smith Ranch-Highland) and two in Texas (Alta Mesa and Rosita).
In 2023, the US imported U3O8 and equivalents primarily from Canada, Australia, Russia, Kazakhstan, and Uzbekistan.
The origin of U3O8 used in US nuclear reactors could change in the coming years, the EIA said. In May 2024, the Biden administration banned imports of uranium products from Russia beginning in August, although companies may apply for waivers until 1 January 2028.
