White House Considers Government Stakes in Nuclear Energy Companies

Aug 31, 2025, 9:14 PM

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The Trump administration is eyeing increased government stakes in US nuclear energy firms as part of a broader strategy to secure domestic uranium production, according to analysts. This follows the Department of Energy’s (DOE) recent move to establish a consortium for nuclear fuel, which could pave the way for federal investment in companies critical to enriched uranium supply. The plan aligns with the administration’s push to reduce reliance on foreign sources amid heightened global security concerns, particularly after the Russia-Ukraine war intensified scrutiny over energy supply chains.

Key Policy Shift, the DOE’s Office of Nuclear Energy is set to collaborate with industry players to identify long-term goals for domestic uranium production. This effort comes as the US nuclear fuel sector seeks $3.4 billion in federal funding from Biden-era appropriations, making it a potential target for future Trump administration deals. Analysts at Compass Point note that government ownership of nuclear fuel production is not uncommon globally, though the current focus on domestic manufacturing reflects shifting priorities.

Targeted Companies, Centrus Energy (LEU) and BWXT are highlighted as likely candidates for federal backing. Centrus, the sole US producer of enriched uranium under a DOE contract, has seen its shares rise over 180% year-to-date, while BWXT—a $15 billion market cap firm—has gained 45%. These companies are positioned to benefit from both national security imperatives and growing demand for nuclear energy driven by AI’s escalating power needs. The Trump administration’s recent Intel deal and rare earths investments underscore a pattern of prioritizing strategic industries through federal partnerships.

Geopolitical Drivers, the Russia-Ukraine conflict has amplified concerns over uranium enrichment outsourcing, prompting calls for self-sufficiency. Meanwhile, the AI boom’s surge in energy demand has drawn attention to nuclear power as a reliable alternative to fossil fuels. This dynamic is evident in the stock performance of firms like Oklo (OKLO), which surged over 1,000% as investors bet on nuclear energy’s role in powering data centers. BofA’s recent Buy rating for Oklo reflects confidence in its next-generation small reactors (SMRs) meeting rising energy needs.

Market Reactions, the nuclear sector has seen broad optimism, with Constellation Energy and Vistra each gaining over 35% due to expectations of increased power demand. These gains highlight investor enthusiasm for nuclear energy’s potential to address both climate goals and technological infrastructure needs. The White House’s focus on domestic production also aligns with broader efforts to reduce reliance on foreign suppliers, a theme echoed in discussions about Saudi Arabia’s possible civil nuclear program during Trump’s upcoming Gulf tour. While the administration’s primary goal remains securing energy independence, the strategy also seeks to strengthen economic ties with key allies and counter China’s influence in critical technologies.

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