Monday, October 20, 2025

Uranium Energy Corp, enCore Energy Awarded Supply Contracts For Strategic Uranium Reserve

The US National Nuclear Security Administration (NNSA) has awarded the final two contracts in relation to the establishment of a strategic uranium reserve for the country. Both enCore Energy Corp (TSXV: EU) as well as Uranium Energy Corp (NYSE: UEC) this morning revealed that they have officially been awarded contracts to supply the Department of Energy with uranium under previously made proposals.

The strategic uranium reserve is a new reserve established by the US government, as a result of increases in the price of uranium and the importance of uranium for domestic nuclear power plants. In establishing the reserve, the US Congress allotted funding to the tune of $75 million for the establishment of the reserve, with any uranium purchased required to have been provided by a vendor that has “produced uranium at a domestic uranium recovery facility at any time since 1 January 2009.”

The first request for proposal (RFP) associated with the reserve outlined that up to four contracts were expected to be awarded under the first round of purchases, with the government expecting purchases to be between 100,000 and 500,000 pounds each, with an initial goal of 1.0 million pounds of U3O8 being placed into the reserve.

On Friday, it was reported that the first two contracts under the RFP were allocated to Energy Fuels Inc (TSX: EFR), whom was awarded an $18.5 million contract, and to Strata Energy, a subsidiary of Peninsula Energy (ASX: PEN), whom was awarded 300,000 pounds of U3O8. Neither firm provided a price per pound associated with their sales.

enCore Energy this morning was the first to buck the trend of not providing full details on the transaction, indicating that they had been awarded a contract to sell 100,000 pounds of natural uranium concentrates at a price per pound of $70.50, well above current market pricing.

“enCore is one of a select few uranium companies qualified and approved to provide uranium to the Uranium Reserve. As we have seen in 2022, global supply chains for nuclear fuel have been severely disrupted by geopolitical events and the need for a domestic and secure supply chain for nuclear fuel is a stark reality,” commented enCore’s CEO, Paul Goranson, on the award.

At the same time, Uranium Energy Corp this morning also revealed they had been awarded such a contract, being the final firm under the original RFP to receive an award. The company indicated it will be supplying 300,000 pounds of uranium concentrates at $59.50 per pound, resulting in the award being worth $17.85 million.

“The U.S. nuclear reactor fleet that provides about 20% of America’s electricity production, and over half of its clean energy, imports nearly 60% of its current uranium requirements from Russia, Kazakhstan and Uzbekistan. The U.S. overdependence on these imports creates untenable energy and national security risks that need immediate high-priority attention from industry and the federal government,” said UEC CEO Amir Adnani on receiving the award.

With the announcement from UEC, four parties have thus revealed that they have been awarded contracts under the RFP, suggesting that no more are to be awarded. In total, the proposal resulted in the strategic reserve acquiring at least 700,000 pounds of U3O8, with figures from Energy Fuels remaining unknown.


Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Uranium Supply Crisis: Miners Won’t Meet What’s Coming | Dev Randhawa – F3 Uranium

In this conversation, Dev Randhawa, CEO of F3 Uranium Corp. (TSXV: FUU), talks about why...

Sunday, July 20, 2025, 02:29:00 PM

French Nuclear Firm Orano Halts Ops In Niger Following Junta, Might Get More Uranium In Canada

In a move driven by the constraints imposed by international sanctions against the military junta...

Monday, September 11, 2023, 10:56:00 AM

Future Shock: A Forward Look At The Uranium Market

Title card presented with apologies to Herbie Hancock. There might be more written about energy...

Sunday, March 28, 2021, 09:00:00 AM

Pegasus Resources Acquires Property With Historic Resource Of 535,718 Pounds U3O8

Pegasus Resources (TSXV: PEGA) is evidently going deep into the uranium sector. The company this...

Wednesday, October 20, 2021, 08:58:45 AM

Defiance ETFs Launches New 2x Leveraged Uranium ETF

Defiance ETFs is introducing a new leveraged commodity ETF called the Defiance Daily Target 2X...

Friday, May 24, 2024, 08:10:06 AM