Uranium’s Role in a Changing Energy Landscape

As countries work to reduce carbon emissions and strengthen their energy systems, nuclear power is once again part of the global conversation. It offers a rare combination: large-scale electricity generation with no direct carbon output and the ability to run around the clock. At the center of this system is uranium—the fuel that powers nearly all commercial nuclear reactors operating today.

In a world where demand for reliable, low-emission power is rising, uranium plays a strategic role. According to the International Atomic Energy Agency (IAEA), over 400 nuclear reactors are currently in operation across more than 30 countries, supplying about 10% of global electricity. Dozens more are under construction or in advanced planning stages, particularly in Asia, where electricity needs are growing rapidly. Programs to extend the lives of existing reactors in North America and Europe are also adding to projected uranium demand in the years ahead.

The uranium fuel cycle begins with mining, mostly concentrated in countries like Kazakhstan, Canada, and Namibia. The ore is processed, enriched, and manufactured into fuel rods, which are loaded into reactors. After use, spent fuel is stored under strict regulatory frameworks. Because this cycle is technically complex and global in nature, supply chains can be sensitive to geopolitical shifts, regulatory changes, and long development timelines.

Source: World uranium production and reactor requirements. World Nuclear Association. Accessed on October 30, 2025

Source: Worldwide Uranium Production. World Population Review. Accessed on October 30, 2025.

Recent joint forecasts from the IAEA and the Nuclear Energy Agency (NEA) project a steady increase in uranium demand through the 2030s. This growth is expected to be driven not only by new reactor builds, but also by restarts, refurbishments, and emerging technologies such as small modular reactors (SMRs), which are being developed to support future grid flexibility and remote applications. These technologies are still in early phases, but policy and infrastructure planning around them is underway in several jurisdictions.

As shown in the chart below, uranium prices have responded to shifting supply-demand dynamics over time. Spot prices have historically been more volatile, while long-term contract prices have tended to move more gradually. Both have seen an upward trend in recent years, reflecting growing interest in nuclear generation and tighter supply conditions in the fuel cycle.

Source: Uranium Spot Price versus Long-term Price. Cameco - Uranium Price. Accessed on October 30, 2025.

While uranium is only one part of the broader energy mix, its importance has become more visible as countries weigh trade-offs between affordability, security, and environmental targets. For investors and stakeholders monitoring long-term infrastructure shifts, uranium represents a key input in how energy systems evolve to meet these competing goals.

By understanding these trends investors and borrowers can better navigate the changing financial landscape. If you would like to discuss it further, contact us at 604.643.0101 or cashgroup@cgf.com.

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