Shares of Centrus Energy Corp. (LEU) surged in pre-market trading on Thursday, October 18, 2024, soaring by 5.49% after securing a lucrative contract from the U.S. Department of Energy (DOE) to expand domestic commercial production of High-Assay Low-Enriched Uranium (HALEU).

The DOE awarded initial contracts to four companies, including Centrus Energy's subsidiary, American Centrifuge Operating (ACO), to produce HALEU, a critical fuel for many next-generation nuclear reactor designs. Currently, HALEU is only produced in Russia, making this move by the U.S. government a strategic step towards energy independence and reducing reliance on foreign suppliers.

Under the contract, ACO will manufacture the centrifuges and supporting equipment exclusively in the United States, leveraging domestic engineering and a U.S. supply chain spanning 14 major suppliers across 13 states. The minimum value of the contract for ACO is $2 million, with a potential maximum value of $2.7 billion for all awardees over a ten-year period, subject to the availability of appropriations.