Centrus Energy has begun preparing for the massive expansion of its Ohio uranium enrichment plant that it will undertake if it receives federal funding.
The company is pitching the plan as an investment in the U.S. and its energy sector. Many of the advanced nuclear reactor designs being developed would be fueled by high-assay low-enriched uranium (HALEU), which is only produced in commercial volumes in Russia.
Centrus has begun small-scale production of HALEU in the Piketon, Ohio, facility with financial assistance from the U.S. Department of Energy. It is seeking further federal assistance to ramp up HALEU and LEU production there and said it will fabricate the new production equipment entirely in the U.S.
Company leaders joined with Gov. Mike DeWine, state and federal lawmakers, and economic development agencies on Sept. 25 to trumpet what would be a multibillion-dollar investment.
Centrus said the project would support 1,000 construction jobs and add 300 permanent jobs to the 127-strong workforce on site now. It would support hundreds more jobs at Centrus’ Tennessee centrifuge factory and elsewhere in a manufacturing supply chain that spans 13 states.
The company said it has raised $1.2 billion in convertible note transactions and secured utility purchase commitments worth more than $2 billion in the past 12 months as it set the stage for the expansion.
Centrus added a caveat to the announcement: The size and scope of the expansion depend on funding decisions by DOE.
No state grants, loans or tax incentives are planned so far, but the state-authorized nonprofit economic development organization JobsOhio is assisting with workforce development for the facility, which is in a rural region of southern Ohio with significantly higher unemployment and a lower median income than both the state and the U.S.
Centrus said it already has begun hiring in anticipation of the Piketon expansion; the Sept. 25 announcement came at an employment expo in nearby Chillicothe.
“The time has come to restore America’s ability to enrich uranium at scale,” Centrus CEO Amir Vexler said in a news release. “We are planning a historic, multibillion-dollar investment right here in Ohio — supported by a nationwide supply chain to do just that. When it comes to powering our energy future, it’s time to stop relying on foreign, state-owned corporations and start investing in American technology, built by American workers.”
The percentage of U.S.-made uranium concentrate processed into fuel for U.S. nuclear power generation began to decrease around 1980. In 2023, 99.85% of it was imported.
This presents a potentially significant grid security issue, particularly as nuclear generation is pitched for a larger role in the grid. To remedy this, lawmakers and policymakers have been trying to boost domestic fuel production, including through the $2.7 billion funding package Centrus is hoping to tap.
The company has recorded successes, including a national first in late 2023 when it produced 20 kg of HALEU in Phase I of its DOE contract.
It checked off the Phase II requirements of the contract in June when it delivered 900 kg to the department.
Also in June, DOE exercised the first of its three Phase III options with Centrus to continue HALEU production at 900 kg/year.
And in late 2024, Centrus announced the department had awarded it an LEU contract and said it was scaling up its centrifuge manufacturing capacity to meet anticipated demand.
Centrus’ stock price closed 13.1% higher in heavy trading Sept. 25.
