Why Uranium Mining is Having a Resurgence in the United States

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Uranium is once again central to global energy strategy, driven by climate urgency, rising power demand, and geopolitical instability. For countries seeking to reduce carbon emissions while maintaining reliable energy supply, nuclear power has reemerged as a practical solution. Small modular reactors and next-generation nuclear designs are progressing rapidly, offering safer and scalable options. Alongside this, uranium’s strategic value is increasing.

Uranium prices have risen above $90 per pound in 2025, nearly tripling over the past three years. This growth reflects both market speculation and genuine supply concerns. The war in Ukraine and ongoing tensions with Russia have disrupted supply chains and elevated concerns about dependence on producers like Kazakhstan and Russia. As a result, nations including the United States are rethinking their domestic uranium strategies.

Why the US is racing to mine its own uranium

For decades, the United States relied heavily on imported uranium, mainly from Kazakhstan, Canada, and Russia. This changed with the Prohibiting Russian Uranium Imports Act, passed in May 2024, which unlocked $2.7 billion in federal funding to revive domestic mining, enrichment, and fuel fabrication.

Federal support extends beyond funding. Executive orders from the Trump administration accelerated permitting for uranium mines, classifying them as essential to national energy security. The Velvet-Wood mine in Utah, for example, received its permit in less than two weeks.

As utilities seek to reduce reliance on Russian fuel, the urgency to boost domestic production has grown. In 2023, only 0.4 percent of the uranium used in American reactors came from within the country. This push is as much about national security as it is about energy economics.

Projects powering the resurgence

Several uranium projects are revitalizing the American West. At the forefront is Kraken Energy’s Harts Point project on Utah’s Colorado Plateau, one of the most uranium-rich regions in the world. Following promising drill results, Kraken secured approval to expand exploration along a five-kilometer corridor. The site benefits from its proximity to the White Mesa Mill, the only operational conventional uranium mill in the United States.

In Arizona, Energy Fuels’ Pinyon Plain mine reported record uranium grades in early 2025, producing more than 150,000 pounds in one month. Anfield Energy’s Velvet-Wood mine, fast-tracked by executive order, stands as another key development. These projects are not only reviving regional economies but also signaling renewed investor confidence in domestic uranium.

Challenges facing the US uranium sector despite momentum

Despite current activity, the US uranium sector faces significant obstacles. Production costs remain high, with in-situ recovery averaging $45 to $50 per pound, well above the $15 to $20 range in Kazakhstan. This disparity continues to pressure long-term competitiveness.

Environmental and tribal concerns are also increasing. Rapid mine approvals near Moab and the Grand Canyon have been criticized for limited public engagement and potential environmental risks. Moreover, mining is just one part of the supply chain. The United States still lacks sufficient domestic enrichment and conversion capacity, requiring mined uranium to be sent abroad for processing.

The strategic rationale for US uranium is strong, but scaling production sustainably is key. As data centers, electric vehicle infrastructure, and artificial intelligence applications raise electricity demand, base-load energy sources like nuclear are gaining prominence. Estimates suggest US nuclear capacity may need to reach 400 gigawatts by 2050. Whether this resurgence results in a stable domestic uranium supply chain depends on market conditions, regulatory support, and environmental safeguards. If these elements align, uranium mining could once again be central to US energy policy.

Sources:

• CNBC