Why Centrus Energy Stock Heated Up Today

Core Viewpoint - Centrus Energy's stock surged 14.2% after announcing plans to expand into centrifuge manufacturing for uranium enrichment [1] Company Plans - Centrus Energy has historically focused on trading enriched uranium and is now planning to enrich uranium independently, including High-Assay, Low-Enriched Uranium (HALEU) for advanced reactors [2] - The company will initially produce Low-Enriched Uranium (LEU) at its facility in Piketon, Ohio, and has secured $2.3 billion in supply contracts [4] - Centrus will begin centrifuge manufacturing in Oak Ridge, Tennessee, which will be used to produce LEU and HALEU nuclear fuel in Ohio [5] Financial Aspects - Centrus is awaiting confirmation of Department of Energy (DOE) funding, estimated at ~$900 million per task order for LEU and HALEU production [6] - The company has secured $1.2 billion in funding through convertible note transactions and currently holds $1.6 billion in cash, with plans to raise an additional $1 billion through stock sales [6] Market Positioning - Centrus aims to dominate uranium enrichment in the U.S., with centrifuge production expected to start in 2029, aligning with the anticipated operational start of new nuclear power plants around 2030 [7]