Centrus Energy (NYSE:LEU) saw its shares climb 2.1% in after‑hours trading on Wednesday following the signing of a fixed‑price contract worth $900 million with the U.S. Department of Energy (DOE) for uranium enrichment services. The contract also provides the company with options for additional High‑Assay, Low‑Enriched Uranium (HALEU) purchases valued at up to $170 million, bringing the total potential contract value to $1.07 billion. This agreement is intended to support the deployment of large‑scale HALEU production capacity at Centrus’ facility in Piketon, Ohio, as part of a broader multi‑billion‑dollar expansion that will encompass both low‑enriched uranium (LEU) and HALEU output.
In mid‑June, Centrus completed production of 900 kilograms of HALEU UF6, finishing two weeks ahead of schedule and concluding its demonstration contract with the DOE. Cumulatively, the company has produced more than 1,900 kilograms of HALEU under the DOE arrangement, and the DOE has extended the prior contract for an additional three months at a cost of $15 million for HALEU storage.
The firm plans to transition the existing HALEU cascade to private commercial operation to satisfy near‑term customer demand while new capacity is being built, with the first new capacity slated for 2029. The initial build‑out will deliver 12 metric tons of annual HALEU production capacity and will also provide capacity to address Centrus’ existing LEU backlog, which is valued at $2.4 billion.
The expansion is projected to generate 1,000 construction jobs and 300 new operating positions in Ohio, while retaining 150 existing jobs at the Piketon plant. An additional 430 jobs are expected at the company’s centrifuge manufacturing plant in Oak Ridge, Tennessee.
Funding for the project will come from a mix of public and private sources, including national security missions, third‑party investments, direct foreign investment, and commercial contracts for both LEU and HALEU.