Uranium Energy Corp (NYSE American: UEC) has announced the launch of United States Uranium Refining & Conversion Corp. ("UR&C"), a wholly owned subsidiary of the company, aimed at developing a new state-of-the-art American uranium refining and conversion facility.
UR&C is being positioned to provide a secure, geopolitically reliable source of uranium hexafluoride ("UF₆"), essential for the production of low-enriched uranium ("LEU") and high-assay low-enriched uranium ("HALEU"). This move is aligned with President Trump’s executive orders calling for a fourfold expansion of U.S. nuclear capacity to 400 gigawatts by 2050 and reduced reliance on foreign sources of uranium.
The current spot market price for UF₆ conversion is in the range of $64-66/kgU, indicating a highly undersupplied market and a major bottleneck in the U.S. nuclear fuel supply chain. UR&C aims to address this demand by developing a new uranium refining and UF₆ conversion plant, with a designed capacity to produce ~10,000 metric tonnes uranium ("MTU") per year as UF₆.
By establishing UR&C, UEC seeks to deliver a capability that is both strategically essential and commercially transformative, expanding domestic uranium refining and UF₆ conversion capacity to create a resilient, American supplier for decades to come.
UEC, as the largest U.S. uranium company by estimated resources, licensed production, and processing capacity, is uniquely positioned to advance this initiative. The company's move to establish UR&C comes at a time when market conditions and federal government support create a prime opportunity for a U.S. company to expand domestic UF₆ conversion capabilities.
UR&C will move the project forward in stages, ensuring disciplined progress, while providing updates as evaluations, partnerships, and government engagement advance. The company has also initiated discussions on potential siting options, evaluating factors such as logistics, workforce availability, public acceptance, local incentives, and synergies with other fuel cycle facilities.
In August 2024, ISR operations began at the Christensen Ranch project in Wyoming, sending uranium-loaded resin to the Irigaray CPP in Wyoming, marking a significant milestone for the company.
With a proven track record, sector leadership, and team depth, UR&C is uniquely positioned to deliver on this national priority, positioning UEC as the only vertically integrated U.S. company with uranium mining, processing, refining, and conversion capabilities.
As the company continues to prioritize its core uranium mining and processing business, UR&C will separately advance to enhance UEC shareholder value, aiming to play a central role in expanding America’s nuclear fuel cycle and strengthening its long-term energy security. Following these announcements, the company's shares moved 2.71%, and are now trading at a price of $10.98. If you want to know more, read the company's complete 8-K report here.
