Uranium prices near $90 as Google, Fortum back Loviisa extension
Uranium prices are soaring, with the spot price for uranium concentrate used to make fuel for nuclear reactors (U3O8) at its highest since early February and long-term prices at their highest level in at least 18 years, among other factors, because data centers need more energy and some hyperscalers have talked up running facilities using nuclear power.
The spot price for U3O8, a lightly processed concentrate known as yellowcake, has shot up to nearly $90 per pound, five times what it was at the lowest parts of the downturn that followed the Fukushima reactor meltdowns in 2011.
Even Google is getting involved, teaming up with Nordic utility Fortum to help keep Finland's Loviisa nuclear plant running longer.
Analysts warn shortages into 2030s
With the world moving away from fossil fuels, demand for uranium keeps climbing, but supply isn't keeping pace.
Experts like UBS say shortages could last well into the 2030s, while Jefferies thinks prices might hit $95 per pound long term. Citi predicts they could even reach $140 a pound by late 2027.
Still, things aren't all smooth: slow progress on new nuclear plants and pushback against expanding data centers might make growth a bit bumpy, even as uranium contracts hit their highest price in at least 18 years.