The situation on the global energy markets is becoming increasingly difficult due to Russia’s boycott. Many countries are therefore building new nuclear power plants in order to reduce CO₂ emissions and to secure the electricity supply. This means that the demand for uranium to produce the fuel elements will rise sharply in the future. Uranium prices have fallen sharply in recent years. Now China is buying up large quantities of uranium on the world market, paying up to 60 per cent above the previous price.
Nuclear energy experiences worldwide renaissance
Outside the EU, China, the USA and Great Britain are investing billions in the expansion of their nuclear power plants. But even within the EU, the expansion is being pushed more and more. France is upgrading its nuclear power plant fleet and wants to build more new ones. Sweden and Finland are sticking to nuclear power despite earlier plans to phase it out. Belgium has extended the lifetimes of the reactor units Doel 4 near Antwerp and Tihange 3 near Liège, despite having decided to phase them out. Italy is discussing a return to nuclear power and Poland is building the country’s first nuclear power plant. These are just a few examples of the renaissance in the use of nuclear energy.
Image: Uran Tagebau, Northern Territory, Australien: Geomartin, CC BY-SA 3.0, via Wikimedia Commons
Demand for uranium will rise sharply in the future
All these new nuclear power plants need enriched uranium for the necessary fuel elements. Up to now, more than 40 per cent of these have come from Russia. Due to Russia’s boycott because of the Ukraine war, this source is no longer available, at least for the Western countries. This means that uranium could become scarce for these countries on the world market in the future.
China buys large quantities of uranium on the world market despite its own large deposits
China has obviously recognised this and is currently buying up large quantities of uranium on the world market. The Chinese are paying over 60 per cent more than the price traded on the current spot market. Obviously, China wants to develop a profitable business model, because China itself has large uranium deposits. Chinese researchers have just discovered further huge uranium deposits in the country. This could even make China the world’s largest exporter of uranium in the future. It would be very convenient for China if the price of uranium were to rise sharply.
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