The U.S.'s sole commercial-scale nuclear fuel producer, Urenco USA, announced plans on Tuesday for a multi-billion-dollar expansion project aimed at increasing its uranium enrichment capacity by nearly 50%.

This news triggered significant gains for uranium mining companies, including Cameco (NYSE: CCJ) and Energy Fuels (NYSE: UUUU).

Cameco Corp (NYSE: CCJ)

Cameco's stock price rose 7%.

Energy Fuels Inc (NYSE: UUUU)

Energy Fuels' share price climbed nearly 11%.

Other notable gainers included Ur-Energy (NYSE: URG), up 22.8%; Uranium Energy Corp (NYSE: UEC), up 13.6%; Oklo Inc (NYSE: OKLO), up 9.8%; NexGen Energy Ltd (NYSE: NXE), up 9.1%; NuScale Power Corporation (NYSE: SMR), up 8.2%; Denison Mines Corp (NYSE: DNN), up 7%; with Centrus Energy Corp (NYSE: LEU) and Lightbridge Corporation (NYSE: LTBR) both advancing 5%.

Urenco USA stated it will expand its Eunice, New Mexico enrichment facility, adding 2.1 million separative work units (SWU) of annual capacity to its existing base of 4.3 million SWU.

The company's plant produces low-enriched uranium up to 5% concentration, suitable for existing commercial nuclear reactors.

The plan involves adding up to 24 centrifuge cascades, with the first set expected to be operational by 2032 and the remainder installed by 2036.

Russia holds a dominant position in the global uranium market, having supplied approximately 20% of U.S. uranium needs two years ago.

However, the U.S. banned imports of Russian uranium in 2024, allowing only limited exemptions that expire in 2028.

While Urenco USA is currently the only commercially operating enrichment company in the U.S., domestic enrichment capacity is being rebuilt rapidly, partly driven by a nuclear energy revival spurred by AI demand.

In a related development, U.S. regulators have approved Constellation Energy's (NYSE: CEG) plan to restart the Three Mile Island nuclear plant.

The company aims to bring the unit back online next year to supply power to a local Microsoft data center.