Energy Boom: Uranium, Nuclear, and the New Power Shift

Is the world on the verge of a nuclear renaissance? According to Woody Preucil, Senior Managing Director at 13D Research & Strategy, the answer is a resounding yes. As nations race to decarbonize, safeguard energy security, and feed an insatiable hunger for electricity—driven, in part, by the rise of artificial intelligence—the uranium market is poised for a profound transformation. In a recent conversation on Financial Sense’s FS Insider podcast, Preucil unpacked the forces fueling this revival and offered critical insights into what lies ahead for uranium, nuclear power, and global energy politics.

Listen: Uranium’s Next Boom: Woody Preucil on US, Global Push to Nuclear Power

A Perfect Storm: Climate, Energy Security, and the AI Revolution

The renewed interest in nuclear energy isn’t a random blip; it’s the product of converging megatrends. “Right now, there’s a nuclear renaissance,” Preucil emphasized, citing three powerful drivers:

1. The urgent push to decarbonize economies and meet climate targets
2. A heightened focus on energy security after Russia’s invasion of Ukraine
3. Explosive growth in electricity demand, especially from AI and data centers

Big tech companies, recognizing their own massive energy footprints, are now signing long-term deals with nuclear providers. As Preucil put it, “The enormous energy thirst from generative AI and the data center buildout” is now front and center in energy planning. These trends are not only extending the life of existing reactors but also accelerating plans for new ones worldwide.

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The Uranium Squeeze: A Supply Crisis in the Making

If you think this is just a story about new reactors, think again. At the heart of Preucil’s argument is a looming structural deficit in uranium supply—a gap he believes will only widen as demand accelerates.

While demand for nuclear energy surges, uranium supply lags far behind. Preucil laid out the numbers: “There are about 440 reactors around the world right now. Today, they use about 190 to 200 million pounds of uranium per year, but the uranium miners have only been producing about 150 million pounds.” Even with some recovery from a decade-long bear market, production is expected to reach just 160 million pounds.

Restarting idle mines is a slow, difficult process, and bringing new mines online can take 10 to 15 years. Preucil was blunt: “The only way to solve this structural supply deficit is through higher uranium prices. You need to incentivize the miners to bring on new capacity.” Current prices, in the mid-$70s to low-$80s per pound, may need to rise to $100 or even $120 to spur significant new mining investment.

Given that it takes a decade or more to bring new mines online, and there are no major projects set to start production soon, he warns, “this supply deficit could actually get worse before it gets better.”

The US Gets Serious: From Policy to Practice

While China and Russia have raced ahead as nuclear technology exporters, the US is finally making moves to catch up. Preucil points to recent executive orders and landmark deals—like the $80 billion partnership with Westinghouse—to quadruple US nuclear capacity by 2050 and start building again.

“After decades of hesitation, the federal government is moving from supporting nuclear power in principle to building it in practice,” he observes. The new approach isn’t just about subsidies; it’s about reviving a domestic ecosystem of “high-precision manufacturing, heavy forgings, control systems, skilled trades, all of which have dissipated since the 1980s.” This, Preucil believes, is “an industrial policy partnership…to make nuclear power a national strategic asset rather than just a private sector experiment.”

Yet, he’s candid about the challenges: “America is the underdog in terms of this nuclear reactor technology race.” Rebuilding the domestic supply chain and regaining lost expertise will take years—a daunting task in a global arena where China is already building 8–10 reactors per year and Russia dominates the export market.

Next-Gen Nuclear: Small Modular Reactors and a Safer Future

One of the most exciting developments Preucil highlights is the rise of small modular reactors (SMRs) and even microreactors. Unlike traditional gigawatt-scale plants, SMRs can be as small as 50 megawatts, with microreactors at around 20 megawatts—enough to power a campus or neighborhood.

“These reactors…are going to have a significant long-term impact on uranium demand,” he says. They offer not only scalability and flexibility but also enhanced safety, thanks to new fuels like TRISO (Tri-Structural Isotropic), which significantly reduce the possibility of a meltdown.

While SMRs are unlikely to move the needle before the 2030s, their impact on uranium demand could be profound, adding to the already mounting supply pressures.

The Takeaway: At the Threshold of a New Era

The world is reembracing nuclear power at a scale not seen in decades. As Preucil put it, “Solving this structural supply deficit for uranium for the existing fleet is paramount and has to be done.” With climate, security, and technological imperatives all converging, uranium’s bull market may indeed be just beginning.

Against this backdrop, as countries, companies, and investors pivot back to nuclear, the West now faces a pivotal challenge: to lead a new era of clean, secure energy—or risk ceding the future to its rivals.

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