Quarterly Uranium Report: Q4 2022

The most recent Quarterly Uranium Report can be found here, offering insights on nuclear and uranium news, performance of the Global X Uranium ETF, and some industry’s key concepts.

Key News of the Quarter

• US is undertaking multiple steps to invest in nuclear energy domestically and globally: Biden-Harris Administration announced $150 million to Improve Nuclear Research and Development Infrastructure at Idaho National Laboratory.¹ The US Department of Energy bought 300,000 pounds of U3O8, starting their earlier solicitation to buy 1 million pounds with up to $75 million in contracts for the strategic uranium resource.² Moreover, the US will assist Thailand to produce nuclear power³, will begin negotiations with Philippines to build nuclear power stations with American technology⁴ and with Turkey to sell to the country small module reactors (SMRs).⁵ Other plans include starting a 2-year Ukraine Clean Fuels from SMRs Pilot demonstration project and initiating Project Phoenix to switch Europe from coal-fired reactors to SMRs.⁶
• The United Kingdom is completing plans to back the construction of nuclear reactors. As part of a plan to phase out gas power plants and decarbonize the electricity supply, UK policymakers are completing plans to finance new small nuclear reactors.⁷ In December, they committed £77 million to aiding in the development of nuclear reactors and nuclear fuel manufacturing. ⁸ The Sizewell C’s ambitious nuclear proposal advanced with official backing.⁹
• Sweden intends to increase its power plant capacity to improve energy security. Sweden’s new centre-right administration wants to build additional nuclear power facilities to increase energy security and reduce carbon emissions. Prime Minister Ulf Kristersson said a new law will abolish restrictions that limit Swedish nuclear reactors to 10 in three locations of the country. After the 2011 Fukushima nuclear accident in Japan, rightwing and leftwing governments closed half of Sweden’s reactors, leaving six.¹⁰
• France to streamline nuclear reactors construction. As President Macron pushes for at least six new facilities to decrease carbon emissions, the French nuclear industry, currently struggling to maintain its fleet of older reactors, needs to hire 15,000 workers annually.¹¹ Macron wants to streamline rules to develop new nuclear reactors faster as maintenance concerns plague France’s older atomic facilities and the energy crisis accelerates the shift away from fossil fuels.¹²
• Korea intends to build reactors in Turkey and Poland. The government-owned Korea Electric Power is in talks with Turkey about constructing four nuclear plants¹³, and its subsidiary Korea Hydro & Nuclear Power has a letter of intent from Polish utilities PGE SA and ZE PAK SA to construct Poland’s second nuclear power plant.¹⁴
• India’s best hope for meeting its climate goals is nuclear energy. India’s largest power producer, NTPC Ltd., plans to build a big nuclear fleet to help the country transition away from coal and reach net-zero emissions by 2070.The state-run business expects to construct 20 to 30 gigawatts of nuclear power by 2040. Nowadays, India has 22 operational reactors with around 6.8 gigawatts of capacity.¹⁵

For performance data current to the most recent month- and quarter-end, please click here. The Fund’s investment objective and investment strategies changed effective May 1, 2018 and again on August 1, 2018. Hybrid index performance (noted as “SOLURANT Index” above in the chart) reflects the performance of the Solactive Global Uranium Total Return Index through April 30, 2018, the Solactive Global Uranium & Nuclear Components Transition TR Index through July 31, 2018, and the Solactive Global Uranium & Nuclear Components Total Return Index thereafter.

URA does not have any holdings in EDF Energy, Korea Electric Power, Kore Hydro & Nuclear Power, PGE SA, ZE PAK SA and NTPC Ltd. Holdings are subject to change.

DEFINITIONS

Solactive Global Uranium & Nuclear Components Total Return Index: The Solactive Global Uranium & Nuclear Components Total Return Index tracks the price movements in shares of companies which are (or are expected to be in the near future) active in the uranium industry. This particularly includes uranium mining, exploration, uranium investments and technologies related to the uranium industry. The Index will include a minimum of 20 components at every rebalancing.

Related ETFs

URA– Global X Uranium ETF

Click the fund name above to view current holdings. Holdings are subject to change. Current and future holdings are subject to risk.