The Uranium Opportunity
A structural supply deficit, surging reactor construction, and unprecedented AI data center demand are converging to create the strongest uranium market fundamentals in a generation.
A Structural Deficit Decades in the Making
The uranium market is entering what industry leaders describe as a pivotal phase. Global uranium production totaled approximately 173 million pounds in 2025, yet reactor requirements continue to outpace supply — with UxC forecasting significant deficits beginning around 2030 and extending through 2040.
Utilities remain critically under-contracted. In 2025, utilities contracted for approximately 82–85 million pounds of uranium, while replacement requirements approached 150–180 million pounds. Major producers including Kazakhstan's Kazatomprom and Canada's Cameco have reduced production guidance despite supportive pricing.
The long-term (term) contract price for uranium has surged from approximately $37/lb in early 2021 to $90/lb in February 2026 — a rise of over 140% in five years. This reflects the market's recognition that new supply cannot be brought online quickly enough to meet accelerating demand.
An Unprecedented Wave of Reactor Construction
Over 70 nuclear reactors are currently under construction across 15 countries — dominated by China and India — with about 115 more planned. Each new reactor creates a 40+ year fuel demand commitment.
| Country | Reactors Under Construction | Reactors Planned | Key Programs |
|---|---|---|---|
| China | ~30 | 40+ | Hualong One, CAP1000/1400, ACP100 SMR, CFR600 fast reactor |
| India | 6–8 | 14 | PHWR-700, VVER-1000, PFBR fast breeder |
| Turkey | 4 | 4+ | Akkuyu VVER-1200 (Rosatom-built), targeting 20 GWe by mid-century |
| Egypt | 4 | — | El Dabaa — first nuclear plant, four VVER-1200 units |
| Russia | 3+ | 4+ | VVER-TOI, RITM-200S floating SMR, BREST-OD-300 |
| South Korea | 2 | 2+ | APR-1400 (Saeul 3 & 4, Shin Hanul 3) |
| Bangladesh | 2 | 2 | Rooppur VVER-1200 |
| United Kingdom | 2 | 4+ | Hinkley Point C (EPR), Sizewell C planned, Bradwell HPR1000 |
China operates the world's second-largest reactor fleet and has the most aggressive nuclear construction program globally. With roughly 30 units under construction and continuous government-backed approvals, China's nuclear capacity is projected to rise sharply toward mid-century.
China will also begin commercial operation of its first small modular reactor — the ACP100 "Linglong One" — in the first half of 2026, making it the world's first operational land-based SMR.
At COP28, over 20 countries pledged to triple global nuclear capacity by 2050. The World Nuclear Association projects that if national government targets are met, global capacity could reach 1,446 GWe — far exceeding the 1,200 GWe tripling goal.
Many reactors originally slated for closure are now being upgraded and extended, adding new fuel requirements not previously anticipated. Upgrades can boost output by 50 to 100 MWe per reactor, further increasing uranium demand.
AI Is Driving Unprecedented Nuclear Demand
The world's largest technology companies are racing to secure nuclear power for AI data centers — creating an entirely new demand layer that was not in any supply forecast even two years ago.
Constellation Energy is investing $1.6 billion to restart the 835 MW Three Mile Island Unit 1 reactor under a 20-year power purchase agreement with Microsoft for AI data centers. The U.S. Department of Energy has backed the project with a $1 billion loan.
Rebranded as the Crane Clean Energy Center, the reactor is targeted to return to operation by 2027 — a landmark in nuclear restarts driven entirely by AI power demand.
Amazon Web Services secured up to 1,920 MW of nuclear power from Talen Energy's Susquehanna nuclear plant under a long-term agreement extending to 2042. The two companies are also exploring SMR construction within Talen's operations.
Amazon previously purchased a 960 MW nuclear-powered data center campus from Talen for $650 million — one of the first direct acquisitions of nuclear-adjacent data center infrastructure by a hyperscaler.
Google signed a Master Plant Development Agreement with Kairos Power to deploy 500 MW of advanced Gen IV nuclear capacity by 2035. The first deployment includes a power purchase agreement with the Tennessee Valley Authority for the Hermes 2 demonstration reactor.
This is the first agreement signed by a U.S. utility to purchase electricity from an advanced, next-generation reactor — setting a precedent for tech-driven nuclear procurement.
Meta announced landmark nuclear agreements with TerraPower, Oklo, Vistra, and Constellation — making it one of the largest corporate purchasers of nuclear energy in American history. The deals include up to eight TerraPower Natrium reactors capable of producing 2.8 GW of baseload energy plus 1.2 GW of built-in storage.
Meta's total nuclear portfolio could reach 6.6 GW — enough to power multiple $27 billion-class Hyperion data center campuses and secure America's AI leadership position.
Goldman Sachs forecasts 85–90 GW of new nuclear capacity would be needed just to meet data center power demand growth expected by 2030. Well less than 10% will be available globally by then.
Why AI Companies Are Choosing Nuclear
Data centers require constant, reliable power. Nuclear is the only scalable zero-carbon energy source that can deliver 24/7 baseload electricity at the gigawatt scale AI demands.
Nuclear plants operate at 90%+ capacity factors — unlike solar (25%) or wind (35%). AI training and inference cannot tolerate intermittent power.
Tech companies have aggressive net-zero commitments. Nuclear is the only firm power source that produces zero operational carbon emissions at scale.
A single nuclear plant can power hundreds of thousands of GPU servers. Meeting data center demand with renewables alone would require vast land areas and extensive grid upgrades.
The Karoo Basin — A Proven Uranium District
Union Power Metals's UA92 project sits within Botswana's highly prospective Karoo Basin — a proven sandstone-hosted uranium system analogous to the world's most productive uranium regions.
The Karoo Supergroup basin hosts over 600 million pounds of discovered U₃O₈ in proven sandstone-hosted deposits. The uranium occurs in fluvially-deposited, peneconcordant tabular deposits within Permian sedimentary sequences — a geological setting highly amenable to in-situ recovery (ISR) extraction.
The Karoo basin is geologically analogous to Kazakhstan's Chu Sarysu Basin, which accounts for approximately 21% of global uranium production and has produced hundreds of millions of pounds via ISR mining — the lowest-cost, lowest-impact extraction method available.
Union Power Metals's UA92 licenses are adjacent to Lotus Resources' Letlhakane Uranium Deposit, which hosts 142.2 Mt at 363 ppm U₃O₈ for 113.7 million pounds — one of Southern Africa's largest known sandstone-hosted uranium systems.
Lotus Resources increased Letlhakane's Indicated Mineral Resources by 65% in December 2024 following an infill drill program of 164 holes for 12,108 metres. The deposit's acid-leach extractability has been verified by ANSTO and SGS test work — confirming its ISR potential.
UA92 — Targeting the Next Major Karoo Discovery
With 6 prospecting licenses covering ~2,414 km² of retained ground in central Botswana, Union Power Metals holds one of the largest uranium exploration positions in the Karoo Basin.
Six 100%-owned prospecting licenses across one of Africa's most prospective uranium basins
Prospecting licenses renewed by Botswana's Ministry of Minerals and Energy, covering the most prospective ground
Targeting roll-front sandstone uranium systems — the same deposit type that powers Kazakhstan's dominant ISR industry
In December 2025, Union Power Metals commenced a high-resolution drone-borne geophysical survey covering approximately 6,630 line-kilometres across three UA92 licenses. The survey includes radiometrics and UAV VLF-EM resistivity data, with full processing, modelling, and reporting.
Preliminary results are expected in March 2026. The program aims to refine target areas and advance the delineation of roll-front sandstone uranium systems ahead of targeted drilling.
Target generation at UA92 has been informed by the reinterpretation of historical Anglo-American coal-bed methane drilling data, which outlined hydrocarbon-bearing Ecca Group units beneath the Karoo sandstones.
Hydrocarbon migration from these Ecca units provides a strong reducing environment, creating the optimal redox interface for roll-front uranium deposition — the central geological model guiding Union Power Metals's exploration strategy.
The Uranium Supercycle
Is Our Opportunity
Explore our Botswana uranium assets and learn how Union Power Metals is positioned to discover the next major Karoo Basin deposit at the onset of a structural uranium bull market.