Roula Khalaf, the editor of the Financial Times, has curated a selection of her favorite stories in a weekly newsletter that brings to light significant global developments.

In a compelling report released on Tuesday, the Nuclear Energy Agency (NEA) and the International Atomic Energy Agency (IAEA) underscored a pressing need for the global community to make substantial investments in uranium mining. This urgency stems from an unprecedented surge in demand for nuclear energy, which is experiencing a renaissance as a low-carbon power source amidst ongoing climate concerns.

The report, known as the biennial Red Book, indicates that the currently identified uranium resources are projected to be depleted by the 2080s, especially under a high-growth scenario. This scenario anticipates a significant increase in nuclear capacity through to 2050, maintaining elevated levels thereafter. The agencies emphasized that while there are “sufficient uranium resources” available to support the anticipated growth, immediate investments in new exploration, mining operations, and innovative processing techniques are crucial.

“Efforts must begin immediately to ensure adequate uranium supplies are available in the medium term,” they warned, highlighting the critical nature of timely action.

Countries and corporations across the globe are increasingly turning their attention to nuclear energy as a viable and reliable solution to meet energy demands while reducing carbon footprints. Notably, the United States, the United Kingdom, and South Korea have committed to tripling global nuclear energy capacity by the year 2050 as part of a pledge made at the COP28 climate summit held in 2023.

In addition to national efforts, major corporations such as Microsoft and Amazon are ramping up their investments in nuclear energy. These tech giants view nuclear power as a strategic asset to support the development of new, powerful data centers that are designed to run complex artificial intelligence systems efficiently.

The IEA stated in January that nuclear energy has entered “a new era,” with interest levels not seen since the oil crises of the 1970s. Annual investments in the nuclear sector have surged by nearly 50% over the last three years, indicating a robust recovery and renewed confidence in nuclear power.

However, this soaring demand for nuclear energy must correlate with substantial investments in uranium mining, as highlighted in the Red Book report. The projected increase in nuclear capacity is expected to reach a staggering 130% by 2050 compared to the levels recorded in 2022 under the identified high-growth scenario.

Despite these optimistic projections, some industry experts caution that the estimates may be conservative. They note that the figures are based solely on government policies and data available at the beginning of 2023, prior to the recent surge in interest from both businesses and policymakers.

Moreover, the report indicates that western energy companies are facing a mounting risk of a uranium shortage against the backdrop of rising demand. Kazakhstan, the world's largest uranium producer, accounted for 43% of global output in 2022. However, in recent years, the country has been diverting more of its uranium exports to Russia and China, while reducing sales to the US and Europe.

In fact, Kazakhstan's uranium production in 2022 surpassed the combined output of Canada, Namibia, Australia, and Uzbekistan, the next largest producers. This shift in trade dynamics is contributing to the growing concerns about uranium supply.

The report also highlighted that nearly 8 million tonnes of “identified recoverable” uranium resources were available at the start of 2023, but many of these resources are expected to be exhausted within this century. While there are additional, less-explored uranium deposits that may be tapped, researchers anticipate that increased investments in exploration could lead to the discovery of new, previously unknown uranium deposits.

Importantly, nuclear reactors do not depend exclusively on newly mined uranium. They also utilize “secondary” sources of uranium, such as material that has been stockpiled by governments and utility companies. Nevertheless, the report concludes that “while secondary sources will continue to supply a portion of uranium demand, it is crucial to bring new facilities online” to ensure a sustainable future for nuclear energy.