The supply of uranium has been limited due to years of underinvestment following the 2011 Fukushima nuclear disaster. This supply-demand gap is expected to continue driving uranium prices higher. China is anticipated to lead the atomic-energy race in this century, with projections indicating that by 2060, it should be generating about 18% of its electricity from nuclear plants, up from about 5% currently.
Key takeaways:
- Uranium and shares in companies that mine it have seen a significant increase in demand, leading to a rally in the market.
- The demand for uranium is driven by a shift towards nuclear energy and away from fossil fuels, with about 60 nuclear reactors currently under construction globally.
- Uranium supply has been constrained due to years of underinvestment in the sector, particularly following the 2011 Fukushima nuclear disaster in Japan.
- China is expected to lead the atomic-energy race in this century, with projections indicating that by 2060, about 18% of its electricity will be generated from nuclear plants.