Traditional nuclear power relies on uranium enriched to 5 percent, but advanced small modular reactors require high-assay low-enriched uranium (HALEU), enriched between 5 and 20 percent. Currently, Russia and China maintain a near-monopoly on large-scale HALEU production, creating a strategic bottleneck for Western nations. In response, the U.S. government earmarked $2.7 billion in January 2026 to expand domestic enrichment, while Centrus Energy has successfully produced over 920 kg of the fuel at its Ohio facility.

Despite these investments, the timeline for widespread HALEU availability remains uncertain. This has prompted firms like GE Hitachi, Westinghouse, and Aalo Atomics to adopt Low Enriched Uranium Plus (LEU+)—a fuel with a U-235 concentration between 5 and 10 percent. Yasir Arafat, Chief Technology Officer at Aalo Atomics, noted that LEU+ offers a faster path to commercialization, as it can be produced using existing domestic infrastructure. Urenco USA, authorized by the Nuclear Regulatory Commission last September, is already producing small quantities at its New Mexico site, with full commercial production expected by mid-2026. This shift allows developers to bypass the current HALEU deficit, potentially accelerating the deployment of modular reactors by the end of the decade.