Shares of Centrus Energy Corp. (LEU) skyrocketed by 6.74% on Thursday, October 18, 2024, following a major announcement from the U.S. Department of Energy (DOE) regarding the production of High-Assay Low-Enriched Uranium (HALEU), a critical fuel for many next-generation nuclear reactor designs.

The surge was fueled by the news that Centrus' subsidiary, American Centrifuge Operating (ACO), secured a lucrative award from the DOE aimed at expanding domestic commercial production of HALEU. ACO was one of only four companies selected for this contract, which has a minimum value of $2 million and a potential maximum value of $2.7 billion for all awardees over a ten-year period.

According to Centrus, ACO will manufacture the centrifuges and supporting equipment exclusively in the United States, relying on domestic engineering and a U.S. supply chain spanning 14 major suppliers across 13 states. This strategic move positions Centrus at the forefront of the emerging HALEU market, capitalizing on the increasing adoption of advanced nuclear reactors by tech giants and the broader push for carbon-free energy sources.