Uranium Surge Uranium prices have surged since Russia invaded Ukraine in late February, an event that further disrupted an already-imbalanced fossil fuel market and pushed high oil and natural gas prices even higher. This latest rally in fossil fuels was so strong and quick that it has induced a number of nations to head back to the drawing board when it comes to their energy policies. Many are now planning to pivot toward alternative energy sources with even greater vigor. And for some, that will mean a large role for nuclear energy, which is generated from reactors powered by uranium.
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According to TradingEconomics.com, on Thursday, uranium prices broke their previous 11-year record, set last month, and surged to $61.60 per pound.The commodity is now trading at its highest level since the Fukushima Daiichi nuclear disaster in 2011, an event that reversed the fortunes of the uranium industry and closed the door on its growth.
The U.S. generates nearly 20% of its electricity from nuclear reactors, and to power them, it relies heavily on imports of cheap uranium from Russia and its allies Kazakhstan and Uzbekistan. So far, President Joe Biden has not imposed sanctions or bans on uranium imports from Russia, and the domestic nuclear industry has lobbied intensely in Washington for the government to refrain from doing so. But bills to ban uranium imports from Russia have in recent weeks been introduced in both the House and the Senate. Should those bills or White House action eventually result in sanctions or a ban, that would cut into already tight uranium supplies. Meanwhile, Russia is reportedly considering its own ban on exporting uranium to the U.S.