President Donald Trump is emphasizing nuclear energy and has rallied the Department of Energy to overhaul the sector through a series of executive orders and initiatives.
The administration's ambitious goal is to quadruple U.S. nuclear generating capacity to 400 GW by 2050 and reinvigorate the domestic nuclear fuel cycle.
What To Know: The DOE is tasked with fast-tracking the construction of next-gen reactors, including demonstration units for the Department of Defense and AI data centers critical to national security.
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In June, the department introduced a new pilot program designed to accelerate the testing of advanced reactor designs and is currently evaluating submissions from participants.
However, the United States does not have enough domestic nuclear fuel resources to satisfy anticipated demand. To address the shortage, the DOE announced on Wednesday a pilot program with the same expedited authorities to spur the development of new nuclear fuel production capabilities.
Nuclear Renaissance
Trump's DOE-driven initiatives represent the most aggressive drive toward a "nuclear renaissance" in decades. If the plans for fuel self-sufficiency and reactor deployment materialize, the U.S. nuclear sector could see unprecedented growth and investor enthusiasm.
Nuclear Stocks
Trump's strong support of nuclear energy technologies and promises of regulatory relief ignited a rally across nuclear-related stocks.
Shares of nuclear utility and reactor developers, including Constellation Energy Corp. (NASDAQ:CEG), Vistra Corp. (NYSE:VST), Oklo, Inc. (NYSE:OKLO) and NuScale Power Corp. (NYSE:SMR) are up significantly since May and saw another bump following Wednesday's announcement from the DOE.
Uranium miners and processors such as Uranium Energy Corp. (AMEX:UEC), Energy Fuels, Inc. (AMEX:UUUU) and Cameco Corp. (NYSE:CCJ) also posted large gains.
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