REM: Cost of nuclear fuel production reaches record high as uranium conversion prices surge 46%

The cost of nuclear fuel production has reached unprecedented levels, with the price of uranium conversion soaring by 46% over the past year, industry analysts report.

The sharp increase in fuel prices is largely attributed to US sanctions on Russian uranium, a key component in nuclear fuel. President Joe Biden signed into law a ban on Russian enriched uranium on May 13, the White House said. However, as the US doesn’t produce enough enriched uranium to meet domestic demand a system of waivers is in place that allows US firms to import Russian uranium until 2028.

Despite the sanctions, the US continues to purchase uranium from Russia with imports more than doubling in the first six months of this year. In May alone, the US bought over 91 tonnes of uranium from Russia, valued at $209.5mn.

"The sanctions are inadvertently affecting European and US producers more than intended," one analyst noted. "They are now paying significantly higher prices for nuclear fuel compared to pre-sanction levels, while Russia is benefitting financially from these transactions."