Uranium prices climbed to $98.30 per pound this week, marking a 7.8% single-day gain and reaching the highest level in 20 months as supply constraints converge with surging demand from artificial intelligence data centers and nuclear reactor construction.
The spot price has jumped nearly 20% over the past month and trades 39% higher than a year ago, according to Trading Economics data tracking uranium futures. Industry consultant TradeTech reported the weekly spot price reached $88 per pound on January 23, reflecting accelerating momentum in the nuclear fuel market.
The rally follows multiple catalysts reshaping uranium supply and demand fundamentals. The US government reduced regulations on construction and permitting for uranium converters and enrichers while announcing new nuclear power plant construction contracts, including partnerships with Cameco and Westinghouse to deploy reactors across the country.
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The government also awarded $2.7 billion in contracts to Centrus Energy and other enrichers to offset supply disruptions from Russian nuclear fuel sanctions. US and European utilities secured contracts with Western producers to reduce dependence on Russian supply chains despite initial resistance to higher prices.
Sprott Physical Uranium Trust, the world’s largest uranium fund, increased its holdings by 100,000 pounds of yellowcake in recent weeks, triggering speculative buying from other physical funds. Investment in uranium assets accelerated on expectations that power-hungry AI data centers will require significant new nuclear capacity.
Uranium mining stocks and ETFs surged in January, with the Global X Uranium ETF jumping 27% and key mining equities gaining between 10% and 30%, marking the strongest performance since 2011.
Market analysts project uranium will need to reach $125 to $150 per pound and sustain those levels to incentivize the capital investments required to meet projected demand of 250 million to 300 million pounds annually within a decade. Current production remains constrained, with US uranium output declining 44% in recent years.
TradeTech’s December exchange value showed uranium at $81.70 per pound, up $17.70 from March 2025 lows of $64 per pound. Long-term contract prices have climbed from $80 to $86 per pound over the past year, signaling utilities’ growing willingness to secure supply despite higher costs.
The uranium market reached a 16-year high of $91 per pound in late 2023 before moderating through 2024 and early 2025 amid tariff uncertainties and trade policy changes.
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