OAK RIDGE, Tenn. — In a significant move for the nuclear power industry, Centrus Energy has unveiled plans for a $60 million expansion in Tennessee aimed at enhancing the production of advanced centrifuges used for uranium enrichment. This announcement was made on Wednesday and signals the company’s intent to resume and escalate its manufacturing operations at its facility in Ohio.

The expansion at Centrus’s expansive Oak Ridge site, which spans 440,000 square feet, aligns with the growing reliance on nuclear energy as a viable strategy to combat climate change. The facility is known for producing and testing enormous 40-foot centrifuges, which are critical components that will eventually be shipped to the enrichment center located in Piketon, Ohio. During a press tour, reporters viewed the centrifuges, although some sensitive equipment remained obscured under tarps.

Centrus Energy is among a group of companies pursuing uranium enrichment in the U.S., a sector that has become heavily reliant on international suppliers. Currently, Russia controls approximately 44% of the global uranium enrichment market and is responsible for about 35% of U.S. imports used for nuclear fuel, according to federal data. Recently, Russia announced a temporary halt on enriched uranium exports to the U.S. following America’s decision to prohibit Russian uranium imports starting in 2028.

Since the onset of the conflict in Ukraine in 2022, nuclear operators in the West have been actively seeking alternative sources of nuclear fuel, as highlighted by recent reports from S&P Global Commodity Insights.

During the press briefing, Centrus President and CEO Amir Vexler clarified that the decision to expand was made prior to Russia’s announced measures. He emphasized that this expansion underscores the need for the U.S. to maintain independence in its nuclear fuel supply. “Nuclear is one of the key essential stabilizers in our sources on the grid. And nuclear fuel is a key essential element of that,” Vexler stated. “Why would you not worry about the security of supply of that key ingredient to our grid?”

Centrus collaborates with the Oak Ridge National Laboratory, recognized for its historical contributions to nuclear research and development. The company aims to access a portion of the $3.4 billion allocated by the Department of Energy to promote domestic uranium enrichment. With a headquarters in Bethesda, Maryland, Centrus currently employs around 300 individuals, roughly 120 of whom work in Oak Ridge. The expansion could potentially create an additional 300 jobs in the same area.

Another significant development in Oak Ridge is from Orano USA, which is also planning to establish a uranium enrichment facility.

The Biden administration recently set a goal to triple the nation’s nuclear energy output by 2050, an initiative aimed at mitigating severe climate consequences. The new strategy calls for the addition of 200 gigawatts of nuclear energy capability, enough to supply power to around 750,000 to 1 million households annually, though this can vary based on regional energy usage.

There are currently 94 reactors across the United States contributing to the nation’s electricity supply without emitting greenhouse gases, and nuclear energy has accounted for approximately one-fifth of the country’s electricity since the 1990s.

To facilitate the expansion of nuclear energy, the strategy outlines several initiatives, including the development of large and small modular reactors, extending the operational lifespan of existing reactors, and potentially restarting those that have been decommissioned due to economic challenges. Additionally, the plan emphasizes improving licensing processes and strengthening the nuclear workforce.

Centrus’s business model focuses on producing uranium enriched to standard levels required for operational nuclear power plants, alongside higher enrichment levels for new small reactor designs currently under consideration but not yet in construction. The company’s subsidiary, American Centrifuge Operating, is one of four firms chosen for a Department of Energy contract aimed at increasing higher-level uranium enrichment capacity.

Concerns have been expressed by some advocacy groups regarding the increased levels of uranium enrichment. Edwin Lyman, who leads the nuclear power division for the Union of Concerned Scientists, raised alarms about the potential for enriched uranium to be misused for nuclear weaponry and the security challenges of managing this material throughout the supply chain.

In response to these concerns, Vexler praised the U.S. Nuclear Regulatory Commission, stating it is the most effective regulatory body in the industry and assured that strict safeguards are in place to protect sensitive materials.