This week, President Donald Trump and Australian Prime Minister Anthony Albanese inked an $8.5 billion critical minerals deal, a move that could significantly reshape the global mining landscape and challenge China’s dominance in the sector. The agreement underscores the intensifying race to secure rare earth minerals and critical minerals, with Utah Governor Spencer Cox actively courting the benefits of this deal during his recent trade mission to New Zealand and Australia.
The timing of this deal is particularly noteworthy given the surging demand for uranium, a critical mineral that has seen prices escalate from $20 a pound in 2017 to $80 per pound this year. Western Australia, home to some of the world’s richest untapped uranium reserves, has maintained a ban on new licenses since 2017. However, the burgeoning nuclear reactor market, particularly for microreactors and small modular reactors, is driving unprecedented demand for uranium, especially for High Assay Low Enriched Uranium (HALEU).
HALEU is a game-changer in nuclear technology. It allows for smaller, more efficient reactor designs that produce more power per unit of volume. This is crucial for applications ranging from advanced nuclear reactors to medical isotope production. However, HALEU is not yet widely available commercially, with Russia and China currently leading in production capacity. The U.S. is playing catch-up, with Centrus Energy beginning HALEU production from a demonstration-scale cascade in October 2023.
Utah, while possessing active uranium mines, lacks the capacity to downblend uranium to the necessary status for advanced nuclear reactor technology. This is where the Idaho National Laboratory (INL) steps in. INL is working to meet the nation’s near- and mid-term HALEU needs by providing small quantities of HALEU to companies and converting used fuel from the Experimental Breeder Reactor-II into larger amounts of usable HALEU.
“The increased urgency as imports from Russia are no longer viable to support advanced reactors’ initial cores,” said Jess Gehin, associate laboratory director for INL’s Nuclear Science and Technology directorate. This urgency is driving several companies, including American Centrifuge Operating, General Matter, Louisiana Energy Services, and Orano Federal Services, to gear up for commercial HALEU production.
The implications of this deal and the broader push for HALEU are profound. It could accelerate the development of advanced nuclear technologies, reduce dependence on foreign supplies, and position the U.S. and its allies to compete more effectively in the global critical minerals market. However, challenges remain, including the need for significant investment in infrastructure and the complex process of downblending uranium.
As the nuclear reactor market continues to grow and the demand for HALEU intensifies, the actions taken today by governments and companies will shape the future of the mining and nuclear industries. The $8.5 billion deal between the U.S. and Australia is a significant step in this direction, but it is just the beginning of a much larger, more complex journey.