Uranium Funding Surge as Prices Jump 24% from March Lows

Nuclear energy demand surges as uranium market faces unprecedented supply constraints, pushing prices higher in a tightening market.

Uranium pricing has demonstrated remarkable resilience in 2025, recovering from March lows of $63.50 per pound to reach $78.56 by June. This recovery represents uranium’s strongest monthly performance of the year and signals fundamental strength in the market despite broader commodity volatility. Long-term contract pricing has stabilized between $80-89 per pound, providing revenue visibility for producers while indicating utilities’ willingness to secure supply at higher price levels.

The price recovery comes amid a significant decline in secondary uranium supply from decommissioned weapons and utility stockpiles. This source of material has dropped from approximately 24 million pounds annually at its peak to under 7 million pounds today, creating a structural shift that places greater reliance on primary production.

The global uranium market now faces an unprecedented dual supply shock. Kazakhstan’s Kazatomprom, which controls approximately 43% of global uranium production, has reduced output by 20% to a mid-point guidance of 14 million pounds. Simultaneously, political instability in Niger threatens operations at Orano’s SOMAIR mine, which contributes roughly 5% of global supply.

These disruptions are particularly significant given the extreme concentration in uranium production, where the top five producing countries account for approximately 75% of global supply. The market’s thin trading profile, averaging only 15-20 million pounds annually compared to 190+ million pounds of reactor requirements, amplifies the impact of production changes on pricing dynamics.

Nuclear energy’s role in the global energy mix is expanding beyond traditional applications. The sector is seeing accelerated demand through new use cases, particularly in powering artificial intelligence and data centers. Corporate buyers are increasingly seeking carbon-free electricity to meet ESG commitments, exemplified by Microsoft’s 20-year partnership with Constellation Energy to restart Three Mile Island Unit 1.

Data center electricity consumption is projected to grow 15-20% annually, driving demand for the baseload power that nuclear energy reliably provides. Westinghouse’s collaboration with Google on advanced reactor technologies demonstrates how AI applications are driving nuclear development, potentially with compressed construction timelines.

The investment landscape for uranium has transformed dramatically. Physical uranium funds now collectively hold over 60 million pounds of material, effectively removing substantial quantities from available supply. The Sprott Physical Uranium Trust alone has accumulated over 56 million pounds since 2021 and recently raised an oversubscribed $200 million to purchase more uranium on the spot market.

Government policy shifts have fundamentally altered the regulatory and financial environment for nuclear energy development. The U.S. government is pushing to expand domestic enrichment capacity to address strategic supply chain vulnerabilities, while also implementing a ban on Russian uranium imports beginning January 2028, with limited waivers until 2035.

Centrus Energy has signed agreements with Korea Hydro & Nuclear Power (KHNP) and POSCO International, reflecting international collaboration in civilian nuclear development. Korea represents one of the largest potential export markets for U.S. enriched uranium with 26 nuclear reactors in operation, where KHNP is the world’s third-largest nuclear plant operator.

India has made a landmark decision to end its longstanding state monopoly on uranium activities, allowing private firms to engage in uranium mining, imports, and processing while accepting foreign minority investment. Additionally, the World Bank’s decision to finance nuclear projects marks a fundamental shift from historical reluctance to support nuclear energy development.

Capital is flowing into the uranium sector through various financing mechanisms. Standard Uranium recently announced a C$3.5 million private placement for exploration at its Davidson River project. North Shore completed a C$1.4 million financing to fund strategic acquisitions in favorable jurisdictions, while Purepoint Uranium raised C$6 million through flow-through financing structures that provide tax advantages to investors.

Laramide Resources secured a larger C$12 million financing to advance late-stage development projects, particularly focused on U.S. permitting initiatives. These transactions reveal how companies are adapting their financial strategies to capitalize on improved market conditions while managing dilution and operational requirements.

Corporate performance has validated the investment thesis for uranium. Cameco Corporation reported Q2 2025 earnings well above expectations, with EPS of $0.71 versus forecasted $0.35 and revenue of $877 million against $585 million projected. The results sent Cameco shares up approximately 4.9% in July.

Energy Fuels, the largest uranium producer in the United States, expects to produce up to 1,435,000 pounds of U₃O₈ in 2025. The company has diversified into rare earth elements processing, creating exposure to multiple critical mineral themes while leveraging existing infrastructure.

The uranium market in 2025 presents a convergence of supply constraints, policy support, and technological demand that creates compelling investment fundamentals. For investors seeking participation in critical materials supporting energy transition objectives, uranium offers both immediate catalysts and long-term structural growth potential within a supply-constrained market environment.