Nuclear Reactor: News, Analysis and Market Coverage

A nuclear reactor generates electricity by sustaining a controlled nuclear fission chain reaction, typically using enriched uranium as fuel. The fission process releases heat, which boils water to produce steam. The steam drives a turbine connected to a generator, producing electricity by the same mechanical principle used in conventional thermal power stations. The key distinction is the fuel source: rather than burning coal, gas, or oil, a reactor uses the energy released when uranium atoms split. Cooling systems remove heat continuously to maintain safe operating temperatures within the reactor core.

A small modular reactor is a nuclear reactor design with a generating capacity below approximately 300 megawatts electrical, smaller than a conventional large reactor, which typically produces 1,000 megawatts or more. Small modular reactors are designed for factory fabrication and site assembly rather than custom on-site construction, with the aim of reducing capital cost and construction time. Designs include pressurised water reactors, molten salt reactors, and high-temperature gas reactors, each with different fuel and coolant characteristics. The first commercial projects are advancing in the United States, Canada, and Romania.

China leads the world in nuclear reactor construction, with more than 20 units under active development as part of a long-term programme to expand nuclear capacity. India, South Korea, Russia, and the United Arab Emirates are also constructing multiple reactors. In Western countries, construction is more limited due to high capital costs and regulatory timelines. The United States, United Kingdom, and France have announced plans to accelerate nuclear development through new reactor approvals and small modular reactor programmes, while Eastern Europe is expanding nuclear capacity as part of energy security strategies.

Each new nuclear reactor represents a uranium supply commitment extending over 40 to 60 years of planned operation. A 1,000-megawatt reactor requires approximately 150 to 200 tonnes of enriched uranium fuel annually, with fuel typically loaded in batches every 12 to 24 months. Uranium procurement by utilities is generally managed through long-term contracts signed years before reactor commissioning. New reactor construction programmes therefore create forward uranium demand that mining companies and traders factor into supply planning. The current global reactor buildout is a key driver of the positive uranium supply-demand thesis.

Pressurised water reactors and boiling water reactors are the two dominant commercial nuclear reactor designs. In a pressurised water reactor, cooling water in the primary circuit is kept under high pressure to prevent it from boiling, transferring heat to a separate secondary steam circuit that drives the turbine. In a boiling water reactor, water boils directly inside the reactor vessel and the steam produced drives the turbine directly. Pressurised water reactors are more common globally, used in the majority of operating reactors. Both designs use enriched uranium fuel.