Recycling Nuclear Fuel Has Two Benefits, and One of Those Helps Energy Security

In an era where energy demands are skyrocketing—driven by AI data centers, electric vehicles, and the global push for decarbonization—nuclear power is experiencing a renaissance. But as nations ramp up their nuclear ambitions, supply chain vulnerabilities loom large, particularly in uranium sourcing. Enter nuclear fuel recycling: a process that not only extracts untapped energy from spent fuel but also slashes waste and bolsters energy security by reducing reliance on foreign imports. This article explores these dual benefits, drawing on recent developments, while examining the U.S.’s uranium import challenges, the potential of recycling to mitigate them, and the broader landscape of nuclear expansion in the U.S. and beyond. We’ll also spotlight key companies in fuel recycling, uranium mining, and nuclear operations that present intriguing investment opportunities.

The Dual Benefits of Nuclear Fuel Recycling

Recycling spent nuclear fuel isn’t a new concept—countries like France, Russia, China, and Japan have been doing it for decades—but it’s gaining fresh urgency in the U.S. The process involves reprocessing used fuel to recover usable uranium and plutonium, which can then be fabricated into new fuel rods. According to industry experts, less than 5% of the energy potential in nuclear fuel is typically used in a single cycle, leaving 95-96% recoverable through recycling.

This boosts efficiency, potentially extending the life of existing uranium resources by 25-30% and reducing the need for fresh mining.

The first benefit is environmental and practical: waste reduction. Recycling cuts the volume of high-level radioactive waste by up to five times and its long-term radiotoxicity by a factor of 10.

Instead of storing spent fuel indefinitely, which burdens facilities and raises disposal costs, recycling transforms “waste” into a resource. Advanced techniques, like those being piloted in the U.S., could shrink isolation times for waste from 300,000 years to just 300 years by recycling all actinides.

The second—and arguably more strategic—benefit is enhanced energy security. By reusing fuel, nations can lessen dependence on volatile global uranium markets, dominated by a handful of suppliers. This is particularly critical for the U.S., where geopolitical tensions have exposed vulnerabilities in the supply chain.

Breaking Russia’s Grip: U.S. Uranium Imports and the Recycling Solution

The U.S. nuclear fleet, which provides about 20% of the nation’s electricity, relies heavily on imported uranium. In 2024, Russia supplied 20% of America’s enriched uranium, valued at around $624 million—down from 27% in 2023 but still a dominant share despite sanctions and a ban enacted in May 2024.

The ban allows waivers until 2028 to avoid disruptions, but with Russia controlling over half of global enrichment capacity, prices have surged, and supplies remain tight.

Recycling could dramatically curb this dependency. By recovering uranium and plutonium from spent fuel, the U.S. could offset 25-30% of its natural uranium needs, avoiding the “wastage of a valuable resource.”

For context, the U.S. has over 94,000 metric tons of spent fuel in storage—enough to power the country for decades if recycled.

Advanced reactors, like fast neutron designs, could burn long-lived actinides without separating plutonium, further enhancing security by minimizing proliferation risks.

As the Trump Administration pushes for energy independence, the Department of Energy (DOE) has awarded nearly $20 million to domestic firms for recycling R&D, signaling a shift toward self-sufficiency.

U.S. Nuclear Renaissance: New Reactors and Policy Push

The U.S. is revitalizing its nuclear sector after decades of stagnation. Vogtle Units 3 and 4 in Georgia came online in 2023-2024, the first new builds in over 30 years, adding AP1000 technology despite cost overruns totaling $36.8 billion.

Historic restarts are underway: Palisades in Michigan aims for early 2026, backed by a $1.52 billion federal loan, while Three Mile Island Unit 1 (renamed Crane Clean Energy Center) targets 2027 under a Microsoft power purchase agreement (PPA).

President Trump’s May 2025 Executive Orders aim to quadruple capacity from 100 GW to 400 GW by 2050, including 5 GW from upgrades and 10 new large reactors under construction by 2030.

The DOE’s Reactor Pilot Program targets three reactors achieving criticality by July 2026, with pilots like Project Pele (a 1.5 MW mobile microreactor) and advanced designs from TerraPower, Oklo, and Kairos Power advancing.

Tech giants are fueling demand: Meta’s deals for up to 6.6 GW from Vistra, TerraPower, and Oklo; Amazon’s 1.9 GW from Talen; and Google’s restart of Duane Arnold.

Globally, 15 reactors are expected online in 2026, adding 12 GW.

But China leads the pack.

China’s Nuclear Surge: A Global Benchmark

China’s nuclear program dwarfs others, with 33 reactors under construction totaling 35 GW—far exceeding the user’s estimate of 30.

Operational capacity stands at 57 GW, with plans for 200 GW by 2035 (10% of power generation).

An additional 168 reactors are proposed, underscoring China’s dominance in construction speed and scale.

Recent milestones include progress at three plants, highlighting Beijing’s strategy to secure energy independence amid global tensions.

This contrast pressures the U.S. to accelerate, where recycling and domestic production could close the gap.

Investment Opportunities: Leading Companies in Recycling, Mining, and Nuclear

For investors eyeing the nuclear boom, focus on firms with strong fundamentals and exposure to recycling, uranium, and operations. Here’s a curated list based on market performance, analyst ratings, and growth potential:

Fuel Recycling Leaders (Investable Stocks)

Oklo Inc. (NYSE: OKLO): Pioneering fast reactors that recycle spent fuel, recovering up to 90% of energy. DOE pilot for fuel fabrication; Meta PPA for 1.2 GW. High-risk/high-reward; market cap ~$1-2B, up significantly in 2025.

Centrus Energy Corp. (NYSEAMERICAN: LEU): Supplies low-enriched uranium (LEU) and develops HALEU for advanced reactors, with recycling ties. Zacks #1 Rank; forward P/E ~20, projected EPS growth 50%+.

TRISO-X LLC: DOE-funded for TRISO fuel recycling pilots; private but watch for IPO potential.

Conclusion: A Path to Secure, Sustainable Energy

Recycling nuclear fuel offers a win-win: slashing waste while fortifying energy security against Russian dominance and supply bottlenecks. As the U.S. pushes for 400 GW by 2050 and China charges ahead, investors should consider these stocks for exposure to a sector poised for explosive growth. Always consult financial advisors, as nuclear investments carry regulatory and market risks. Stay tuned to Energy News Beat for more on the evolving energy landscape. Michael Tanner and Stu Turley will be covering this on the Energy News Beat Stand Up later today.

Sources: energy.gov, nucnet.org, oilprice.com

 

Get your CEO on the podcast: https://sandstoneassetmgmt.com/media/

Is oil and gas right for your portfolio? https://sandstoneassetmgmt.com/invest-in-oil-and-gas/