Uranium prices have increased 141% in the last four years.
This year, the price reached a six-month high of $83 per pound on September 25 and has decreased to $76.2 on November 18. Despite recent decreases, uranium prices have skyrocketed in the last five years. In October 2020, a pound of uranium cost $25.1
Will the price of Uranium increase beyond the September 2025 high? Nobody can accurately answer that question. However, the demand for uranium will increase by 28% by 2030 and more than double by 2040.2 The current global supply of uranium is severely constrained for technical and political reasons.
Uranium production in the United States has increased significantly this year, going from 50,000 pounds in 2023 to 677,000 pounds thus far in 2024.3More domestic production may come online in coming years, improving supply. However, demand is going to skyrocket, for the reasons detailed below.
Getting Uranium From The Mine To A Nuclear Reactor
Nuclear reactors rely on uranium as the primary fuel. Getting uranium from the ground into a nuclear reactor is a complex process.
Modern mining uses what’s called an “In-situ” process that essentially pumps the uranium out of the ground. The uranium is then milled into uranium concentrate or a brown substance called yellowcake.
It’s then further processed into the pellet form that’s used in nuclear reactors to produce power. Uranium processing still takes place in the United States but production has decreased by 98% since 2000.
Whatever happens to the supply, domestically and internationally, the demand for uranium is only going to increase significantly in the United States and here are the reasons.
Artificial Intelligence and Data Centers
The use of Artificial (AI) Intelligence continues to increase. AI requires data centers to operate and these require huge quantities of electricity for technology and cooling.
A single data center uses the same electricity required to power almost 7 million homes. The number of data centers under construction in the United States? 335.
The government and the technology companies are planning to use nuclear energy to provide the power for these data centers. For example, Oracle will power its AI data center with three “modular” nuclear reactors. Other countries are also building data centers and will also use nuclear energy for power. This will boost the demand for uranium.
Electric Vehicles and Heat Pumps.
By 2030, the National Renewable Energy Laboratory predicts there will be almost 42 million electric vehicles on the roads in the United States. There are currently 4.1 million electric vehicles in the United States, according to Experian Automotive.
The United States is also moving toward a heating and cooling infrastructure based on heat pump technology. In 2024, manufacturers shipped 32% more heat pumps than gas furnaces.
The move to EVs and heat pumps will require more electricity. This will come from nuclear energy.
Environmental Considerations.
The technology companies behind the construction of data centers wouldideally like to power their facilities through wind, solar, and other renewableenergy sources. However, these sources cannot provide the required energy.
These companies are focused on using what they determine to be environmentally-responsible energy sources. Their only current option is nuclear energy. This will increase the demand for uranium.
Supply Chain Issues.
The current supply chain for uranium, domestically and internationally, is best described as “one big hot mess.”
Most of the world’s uranium comes from countries that are politically chaotic or unfriendly to the United states, or both.
Uranium self-sufficiency is a viable goal for the United States but it will take at 5-10 years for that to happen. In the interim, until The United States can be self-sufficient, the suppliers of uranium will be motivated to increase the price of uranium. The countries with uranium deposits have the leverage.
There are Hundreds of New Nuclear Facilities on The Way.
At the 2023 UN Climate Conference, 22 nations, including the U.S.,pledged to triple nuclear power capacity by 2050.
- Globally, 66 nuclear reactors are under construction.
- 101 are in the permitting pipeline.
- 314 have been proposed.
All these facilities will require processed uranium and this will increase demand.
Uranium Is The Only Alternative
Current energy options include renewables and fossil fuels.
A world driven by renewable energy may be an excellent goal, but the problems with the “renewable” sources include:
- Inconsistent power delivery.
- No successful way to store the energy produced.
- Potential for widespread blackouts, especially at times of peak demand.
- High installation and maintenance costs.
- Higher end-user costs.
Oil, gas, and coal can be effective but there’s an environmental issue.Many governments are preventing the development of fossil fuel-based power plants.
Simple Numbers.
Population growth will increase the demand for electricity. By 2040, the U.S. population is projected to exceed 380 million from the current 340 million.
The United States plans to meet the increase in demand for electricity through nuclear energy.
Next Steps For Investors
Ultimately, there’s no fully accurate way to predict the price of uranium. However, there are three certainties:
- The demand for uranium is going to increase, short-term and long-term.
- The supply of uranium will continue to be inconsistent.
- The United States is committed to energy independence and this means a goal of 100% domestic uranium supply.
We’ve identified three companies investors should watch closely.
Large Cap: Cameco (CCJ) — The Blue Chip of Uranium
Cameco is one of the largest global providers of uranium fuel needed for nuclear energy. The company has access to the world’s largest cache of high-grade reserves, boasts low-cost operations, plus has investments in the nuclear fuel cycle.i
- Market Cap: ~$40B
- Operations: Athabasca Basin (McArthur River, Cigar Lake); U.S. ISR assets; Westinghouse stake.
- Analyst Consensus: $85–$95 average.
- 12-month target: up to $110.
- Catalysts: Increased contract volume, Westinghouse synergies, AI-driven baseload demand.
- Why It Matters: Institutional anchor. Validates the uranium bull market.
Mid Cap: Uranium Energy Corp (UEC) — The Pure-Play Growth Engine
Uranium Energy Corp describes itself as: “America’s leading, fastest growing, uranium mining company.”
Production has restarted at its Wyoming hub and spoke In-Situ Recovery (“ISR”) platform. This makes UEC one of the world’s top global suppliers of uranium. It also controls one of the most significant uranium resource portfolios in the Western Hemisphere.ii
- Market Cap: ~$3.5B
- Projects: Texas, Wyoming, Arizona; hub-and-spoke ISR model; owns U.S. processing facilities.
- Analyst Consensus: $14.80–$15.60 average; highs above $19.
- Catalysts: Restarted production, DOE offtake eligibility, rising spot prices.
- Why It Matters: Nimble U.S. operator with the scale to respond quickly to new federal contracts.
- Small Cap: Homeland Uranium (HLU / HLUCF) — The Asymmetric Speculation
Homeland Uranium was previously known as Valleyview Resources. The company is in the process of acquiring two uranium projects in northwest Colorado. There are two projects: Coyote Basin and Red Wash.iii
- Market Cap: ~$50M
- Stage: Early exploration and development.
- Price: ~$0.50 per share; 12-month analyst target ~$0.90 (80% upside).
- Thesis: Perfect alignment with Trump-era EO tailwinds. Positioned to benefit from DPA funding and Section 232 uranium policy.
- Low float, high leverage to uranium price.
- Why It Matters: The kind of speculative microcap that can move 500%–1,000% in a supercycle. Fits the “next MP Materials” narrative — a junior aligned with federal priorities.
