In a recent article on Reuters, it was highlighted that uranium, despite its critical attributes, was omitted from the U.S. Geological Survey's critical minerals list in 2022 due to a technicality. Nevertheless, there is a push, led by former President Donald Trump, to reconsider this decision. Being included on this list would provide access to federal funding and expedited permitting for domestic uranium projects.
Uranium possesses many qualities that make it a critical mineral, such as a surge in demand, global supply concentration, and heavy U.S. import reliance. Although the price of uranium has slightly receded from its peak, the current price remains historically high.
While the Fukushima disaster in 2011 prompted a global reassessment of nuclear power, recent initiatives, like the "Declaration to Triple Nuclear Power" launched at the COP28 summit in December 2023, highlight a renewed interest in nuclear energy to combat climate change.
Internationally, there is an increasing trend towards nuclear energy, with more reactors under construction and extensions planned for existing ones, resulting in a rising demand for uranium.
Political tensions and market constraints further compound the uranium landscape, with efforts to reduce reliance on Russian uranium and potential trade tariffs adding to the complexity of the market.
Despite past market fluctuations, the uranium sector is poised for growth, with the United States holding potential for new projects to meet the rising demand. The distinction between a critical mineral and a "fuel mineral" will likely play a crucial role in determining the pace of activating these supply projects.
Overall, the resurgence of nuclear power underscores the necessity for increased uranium production to match the expanding global demand.