McKinsey Report: US Needs Up to $170 Billion for Domestic Nuclear Fuel Supply Chain

A recent report by McKinsey & Company estimates that the United States must invest between $105 billion and $170 billion to establish a fully domestic nuclear fuel supply chain by 2050. This massive capital injection is required to support existing commercial nuclear operations and an additional 300 GW of new capacity, totaling roughly 400 GW. The analysis, based on aspirational scenarios from May 2025 executive orders, highlights critical vulnerabilities, noting that the US currently imports approximately 99% of its raw uranium ore. Domestic milling capacity is virtually nonexistent, conversion is limited to a single facility, and enrichment covers only one-third of domestic needs. The proposed investment would cover mining, milling, conversion, enrichment, fabrication, and reprocessing. While the Department of Energy recently awarded $2.7 billion for domestic enrichment, the report suggests this amount is insufficient to address the systemic gaps. Achieving energy independence in the nuclear sector aims to mitigate geopolitical risks and price volatility, particularly as demand grows for high-assay low-enriched uranium (HALEU) needed for next-generation reactors.