The International Atomic Energy Agency (IAEA) has reported that global uranium production is increasing, to meet the rising demand from the nuclear energy sector. However, for the longer term, it is necessary for new projects to be developed and come on stream. These findings are in 'Uranium 2026: Resources, Production and Demand', a joint report of the IAEA and the Nuclear Energy Agency (NEA) of the Organisation for Economic Cooperation and Development.

Worldwide, on January 1, 2025 there had been 418 commercial nuclear reactors in operation, with a total generating capacity of 378 GW(e). Fuelling these required some 64 500 tons of uranium (tU) a year (tU/y). There were another 23 reactors, with a total capacity of 19.7 GW(e), in a state of suspended operation.

However, global nuclear power generation is expected to increase significantly, even under low-growth scenarios. This growth is aimed at increasing energy security and countering climate change. This increase will need uranium production to increase to between 84 800 tU/y, for the low-growth scenario, to 143 900 tU/y, for the high-growth scenario.

Current identified uranium resources, that can be recovered at costs less than $260/kgU, total more than 8.1-million tons, worldwide. This is a 2.1% increase over the figure reported in the previous, 2025, edition of the IAEA/NEA uranium report. This is enough to meet even the highest forecast level of future demand.

But these resources have to be turned into production. That will require new projects to be developed, and the development of uranium projects is time consuming, with the identification, permitting and developing of new uranium projects typically taking from 15 to 20 years.

“Adequate and sustained uranium prices supported by long-term contracts are therefore critical to maintain exploration momentum, support final investment decisions for new mines, and accelerate innovation in extraction techniques for improved processing and recovery of resources,” noted the IAEA.

Nevertheless, the uranium sector is responding to the rising demand signals.

In terms of output, global uranium production during 2023 and 2024 was, with a total figure of 116 000 tU, some 20% higher than in 2021 and 2022. The production number for 2024 alone was 61 924 tU, the highest annual output since 2016.   

Global uranium exploration and development spending in 2023/24 was, at more than $1.78-billion, some 46% higher than in 2021/22. But much of this increase was directed at exploration, not project development. This highlighted how important it is to expand the development pipeline.