Craig-Hallum analyst Eric Stine noted that the expansion of the partnership between KHNP and Centrus underscores the latter firm’s geopolitical significance
Centrus Energy (LEU) stock logged its best day in nearly three months on Tuesday after signing deals with two South Korean firms to support the expansion of its uranium enrichment plant in Piketon, Ohio.
The stock closed up 12.6% at $208.67 on Tuesday and added another 1.2% in after-hours trade.
Nuclear fuel producer Centrus is competing for funding from the U.S. Department of Energy to expand U.S. enrichment capacity. The non-binding memorandum of understanding (MOU) with Korea Hydro & Nuclear Power (KHNP) and POSCO International will provide the company with additional private sector capital.
Additionally, Centrus and KHNP, the world’s third-largest nuclear reactor operator, agreed to an increase in the supply volume of enriched uranium under the contract they signed in February 2025.
“This agreement reflects strong demand for a U.S.-owned uranium enrichment capability,” Centrus CEO Amir Vexler said, before adding that it also helps meet the Asian country’s need for affordable, reliable fuel supplies for both new and existing reactors.”
Retail sentiment on Stocktwits about Centrus jumped to ‘extremely bullish’ territory from ‘neutral’ a day ago.
The agreement also calls for the companies to explore additional opportunities for cooperation, such as additional supply agreements for LEU as well as High-Assay, Low-Enriched Uranium (HALEU) for next-generation reactors.
HALEU is enriched between 5% and 20%, and it is the key to many advanced, smaller reactors that produce more power per unit of volume.
There is a broad bipartisan support for nuclear power, which the U.S. lawmakers believe could be the answer to the rapid rise in power demand. However, currently, Russia is the only viable supplier of HALEU on a large scale.
“Low float covering on deck! Expecting the run to continue tomorrow!” one user wrote.
Craig-Hallum analyst Eric Stine noted that the expanded relationship with KHNP underscores Centrus’ geopolitical significance, given the involvement of the U.S. Department of Commerce in the announcement. It also bolstered his view that the company is well-positioned to secure significant funding from the DOE.
Centrus stock has more than tripled this year.
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