Centrus and KHNP Sign Long-Term Supply Commitment

Core Points - Centrus Energy Corp. has secured a total of $1.8 billion in contingent sales commitments, including a significant commitment from Korea Hydro & Nuclear Power (KHNP), to support the construction of new uranium enrichment capacity in the U.S. [1][2][3] - The commitments are contingent upon entering definitive agreements and securing necessary public and private investments for the new capacity [2][5]. - The partnership with KHNP aims to enhance the stability and diversity of the global nuclear fuel market, supporting the growth of carbon-free nuclear energy [3][4]. Company Developments - Centrus has deployed a cascade of 16 advanced centrifuges at its American Centrifuge Plant in Piketon, Ohio, which began producing High-Assay, Low-Enriched Uranium (HALEU) in late 2023, marking a significant milestone as the first U.S.-owned uranium enrichment plant to start production in 70 years [4][5]. - The company plans to scale up production with additional centrifuges for both Low-Enriched Uranium (LEU) and HALEU, contingent on securing sufficient funding and purchase agreements [5][6]. - Centrus is actively competing for federal funding to boost U.S. production of LEU and HALEU, with Congress having allocated over $3.4 billion for this initiative [6]. Industry Impact - The collaboration with KHNP is expected to bring greater stability and price competition to the global nuclear fuel market, which is crucial for the long-term growth of nuclear energy [3][4]. - The establishment of a U.S.-owned uranium enrichment capability is seen as a strategic move to enhance energy security and reduce reliance on foreign sources [3][5].