Plans to ramp up nuclear power capacity could run into tight uranium supplies, the World Nuclear Association warns in a recent report.
It urges producers to secure new sources of the critical mineral as global demand from reactors is set to rise by a third—to 86,000 tonnes by 2030 and 150,000 tonnes by 2040—while mines are expected to halve their output between 2030 and 2040.
The “significant gap” between demand and supply projections threatens an awaited nuclear power “renaissance,” the Financial Times writes.
The WMA calls for significant exploration, innovative mining techniques, efficient permitting, and timely investment to deliver new uranium supply.
Demand for nuclear power is rising as countries seek to bolster energy security, and as data centre developers invest in carbon-free power sources. But big uranium producers have recently announced production cuts, leading analysts to warn of supply risks that could push up prices.
“The whole ecosystem needs to be in equilibrium, and it’s not,” Mark Chalmers, CEO of the Colorado uranium company Energy Fuels, told the Times. “There are clouds on the horizon.”
Chalmers said he expects to see more companies reducing their forecasts as aging mines become less productive.
Global nuclear capacity is set to almost double to 756 gigawatts by 2040, with much of the increase coming from China and India. But uranium access is likely to follow a slower timeline, as it can take 10 to 20 years to start mining after discovery.
Stock prices for Canadian uranium companies went up following news that the United States is looking to expand its domestic uranium stockpile. The U.S. wants to “usher in a nuclear renaissance” and shift away from buying uranium from Russia, which has been a major source of enriched uranium globally. Russia alone supplies almost a quarter of the U.S.’ enriched uranium, reports Bloomberg.
