top of page

Update: “Investment Strategy: Nuclear Energy as a Bridging Technology”

  • Writer: David Schmidt
    David Schmidt
  • Jun 17
  • 2 min read

Uranium Investment Market Update – April 2025


Current Market Development


The spot price for uranium currently stands at approximately USD 65.30 per pound—reflecting a decline of over 10% since the beginning of the year. This correction stems from temporary supply expansions, speculative restraint, and broader macroeconomic uncertainty. Nonetheless, the fundamental imbalance between supply and demand remains unresolved.


Supply–Demand Gap


  • 2024 Production: approx. 155 million lbs U₃O₈

  • 2024 Forecasted Demand: approx. 195 million lbs

  • Deficit: approx. 40 million lbs – a structural issue likely to intensify by 2030


Kazatomprom, among others, has announced a 17% production cut for 2025—citing supply chain disruptions and shortages of sulfuric acid—removing additional physical material from the market.


Nuclear Reactor Boom & SMRs


The global number of reactors either operational, under construction, or planned is accelerating:


  • 412 reactors currently in operation

  • 59 under construction (primarily in China, India, Russia)

  • 401 in planning or permitting phases


Simultaneously, Small Modular Reactors (SMRs) are gaining significant political support. Canada has issued its first SMR permit, while the US and UK are investing heavily in pilot projects.


Technological Advancements


  • HALEU fuel: Required for SMRs – supply availability increasing

  • TRISO fuel: Highly robust and inherently safe – companies like X-energy are scaling production

  • Thorium research: China is already successfully testing molten salt reactors; India is following suit


Geopolitics & Strategic Alliances


  • Western nations (US, EU, Canada) are pushing to repatriate uranium supply chains

  • New alliances such as the Nuclear Energy Alliance (NEA) are focused on building independent supply routes to reduce reliance on Russia and China


Valuation & Investment Opportunities


  • Companies like UEC, Cameco, and IsoEnergy are positioned to benefit from heightened interest in secure uranium sources and next-generation technologies

  • Despite short-term price weakness, analysts at Sprott, Wells Fargo, and others describe “an attractive entry point for long-term investors”


Conclusion – Investment Case Remains Intact

While uranium prices are currently consolidating, the long-term fundamentals remain bullish:


  • Persistent structural supply deficit

  • Governmental support for nuclear power

  • Technological disruption via SMRs

  • Long-term demand visibility driven by global expansion plans


An update to the original thesis is recommended, particularly to incorporate themes such as the SMR breakthrough, Kazatomprom’s production decline, and the geopolitical reassessment of strategic resources like uranium.


Disclaimer:

The information and publications provided are not intended as financial, investment, trading, or any other form of advice or recommendation by Handelsplan-Digital. These represent solely personal ideas. These ideas may or may not be implemented by CoreLogicCapital.

 
 
 

Comments

bottom of page