Metals in Motion: Nuclear Energy and the Uranium Market

Thalia Hayden, ETF Guide:
You’re watching Metals in Motion. I’m Thalia Hayden with ETF Guide.

We’re glad to see you again. The global energy map is being redrawn in real time. As volatility in the Middle East puts the world’s oil and gas arteries under pressure, the conversation has shifted from the pipeline back to the reactor.

In a world of geopolitical upheaval, energy security is not just a goal; it is a survival tactic. This is why nuclear power is reclaiming the global spotlight.

Joining us to discuss this further is John Ciampaglia, CEO of Sprott Asset Management. Welcome, John.

John Ciampaglia, Sprott Asset Management:
Thank you for having me back.

How does nuclear power compare with other energy sources?

Thalia Hayden:
For nuclear energy, the narrative has shifted from alternative energy to mission-critical baseload power. How does nuclear power compare with other energy sources?

John Ciampaglia:
The conflict in Iran has had an incredible impact on a number of supply chains, including oil, gas, LNG and derivative products such as sulphuric acid and urea.

It is having a significant impact on countries that depend on the region for fuel feedstocks and other industrial commodities.

This is highlighting the fact that uranium, which is the fuel used for nuclear energy, has remained completely uninterrupted and has experienced no impact from the conflict.

It illustrates the benefits of diversifying the energy mix by producing electricity from several different sources. This helps countries avoid becoming overly reliant on one type of fuel or one supplier.

This is the second major energy shock we have experienced in just four years. It highlights the benefits of nuclear energy, which has a very high energy density and can operate continuously. This is why it is considered a source of baseload power.

How is institutional investment changing the nuclear sector?

Thalia Hayden:
We are seeing significant amounts of capital flowing into nuclear projects. Recent deals include large-scale partnerships to deploy next-generation reactors and restart dormant projects.

How is the surge in institutional investment changing the outlook for uranium and the wider nuclear sector?

John Ciampaglia:
There is currently a scramble to secure energy. When I say energy, what I am really referring to is electricity.

Electricity demand is being driven by areas such as artificial intelligence and data centres, which are extremely electricity-intensive operations.

There is an AI race taking place between the United States, China and other countries. Everybody wants to be the leader, but one of the major obstacles that we are learning about is access to electricity.

Powerful chips, transmission lines and other infrastructure are important, but electricity is proving to be the bottleneck.

This is where nuclear energy has entered the artificial intelligence story. Many of the companies pursuing ambitious AI strategies, including Microsoft, Google and Meta, have determined that nuclear energy could help to address this electricity gap.

These companies have announced a range of financial transactions with large utilities and start-up companies developing the next generation of smaller nuclear reactors. They are putting significant capital behind these projects.

They are also signing very long-term power purchase agreements at electricity prices that are considerably higher than current market levels.

There is clearly strong demand, and nuclear energy is becoming an increasingly important part of the solution for meeting the electricity load growth that we are beginning to see in certain parts of the world.

Can uranium miners increase production quickly enough?

Thalia Hayden:
Uranium demand is accelerating faster than supply. Can miners realistically scale production in time to meet this increase in demand?

John Ciampaglia:
It is a very good question.

Building a new AI data centre might take three, four or five years. Building a nuclear power station will generally take considerably longer.

Bringing a new uranium mine from discovery into production could take 15 years or more.

There is therefore a real mismatch between the time required to build electricity-related infrastructure and the time required to bring the necessary fuel to market.

This is why there is currently a significant push to restart old mines and expand existing operations.

Over the past five years, global uranium production has increased from approximately 125 million pounds in 2021 to around 175 million pounds last year.

That increase is positive. It is translating into higher revenues and profits and giving companies the ability to restart older projects or bring new projects into production.

However, even with this significant increase in production, the market is still experiencing a supply deficit. We are continuing to consume more uranium than we produce.

That deficit is expected to increase as more reactors come online and additional reactor designs progress through development.

The supply deficit is already in place and is likely to become more pronounced. This could ultimately be supportive of uranium prices and uranium mining companies.

What is driving the latest momentum in uranium?

Thalia Hayden:
Uranium miners have delivered strong returns over the past one, three and five years, outperforming the S&P 500.

As we move through 2026, how is the sector performing, and what is driving the latest momentum?

John Ciampaglia:
Investors are beginning to connect the dots around how nuclear energy could receive a larger share of the overall electricity mix in the coming years.

Countries are looking to diversify their energy systems while also meeting increasing electricity demand.

Investors see this opportunity. They see the increase in uranium production and the increase in the price of the commodity.

Five years ago, uranium was trading at approximately $25 per pound. Today, the price is in the high $80s per pound.

There has been a significant increase, and the valuations of uranium companies have risen to reflect this.

This is one of the reasons why capital is returning to the sector. We have seen strong inflows into physical uranium products, including our own, as well as into uranium mining ETFs around the world.

Investors believe the underlying fundamentals are durable and could continue to develop over many years.

We believe the theme is still in its early stages and represents a very long-duration cycle.

Capital is returning to the sector, and returns have been robust because the industry has experienced a significant re-rating as it has come back into favour.

How does the Sprott and HANetf partnership support European investors?

Thalia Hayden:
As we move into a period of structural supply deficits and a global nuclear build-out, how does the Sprott and HANetf partnership help address the access gap for European investors?

John Ciampaglia:
We have had a partnership with HANetf for the past few years. Through this partnership, we have brought some of our most popular North American investment strategies to European investors.

Europe has felt the impact of recent energy shocks particularly strongly because it is highly dependent on other countries for natural gas, LNG and oil.

Nuclear energy is one way in which European countries can diversify their energy systems and reduce their exposure to these supply shocks.

We are seeing a significant shift in public sentiment and political willingness to reconsider nuclear energy in Europe.

Countries including Switzerland, Belgium and Italy are rethinking the technology. We are seeing reactor life extensions and previous restrictions being removed.

All of this is attracting greater investor interest.

In Europe, we offer uranium mining ETFs through our partnership with HANetf, as well as a product that provides exposure to physical uranium through the Sprott Physical Uranium Trust.

These investment vehicles have proven popular with European investors.

Closing remarks

Thalia Hayden:
Thank you very much, John.

John Ciampaglia:
Thank you for having me.

Thalia Hayden:
That concludes today’s episode of Metals in Motion.

For more information about the topics discussed today, visit the HANetf website.

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I’m Thalia Hayden with ETF Guide. Thank you for watching, and we will see you next time.