NANO Nuclear Rises as Partner Secures US Uranium Enrichment License
Key state-level license allows partner LIS Technologies to advance laser enrichment of HALEU reactor fuel at the historic Oak Ridge facility, a critical step in NNE's vertical integration strategy.
Shares of NANO Nuclear Energy Inc. (NASDAQ: NNE) advanced Tuesday after the company announced its strategic partner, LIS Technologies Inc. (LIST), secured a key radioactive material license in Tennessee, a significant step toward establishing a domestic supply chain for next-generation nuclear reactor fuel.
The stock climbed in trading as investors reacted to the news, which moves the company closer to its goal of becoming a vertically integrated nuclear technology leader. NANO Nuclear, with a market capitalization of approximately $1.67 billion, is developing portable micro modular reactors (MMRs) that require a reliable source of High-Assay, Low-Enriched Uranium (HALEU)—a fuel not yet commercially available at scale in the United States.
The new license, granted by the State of Tennessee's Division of Radiological Health, allows LIST to operate its Demo Test Loop Facility at the historic Oak Ridge K-25 site. Critically, the permit enables the company to procure uranium hexafluoride (UF₆) feedstock to begin research and development on its proprietary laser enrichment technology for producing both Low-Enriched Uranium (LEU) and HALEU.
"This is a major milestone not only for LIS Technologies, but for the future of the U.S. nuclear fuel supply chain," the companies stated in a press release. The development is seen as a crucial piece of a national effort to onshore nuclear fuel production and reduce dependence on foreign suppliers.
This initiative aligns with broader U.S. government objectives. LIST was previously selected by the U.S. Department of Energy (DOE) for its $3.4 billion LEU Acquisition Program, aimed at stimulating domestic enrichment capabilities. NANO Nuclear is positioned as a key subcontractor in that effort, embedding it within a federally supported push to secure the nation's energy future.
For NANO Nuclear, the advancement of its enrichment partner is fundamental to its corporate strategy. The company is pursuing an ambitious 'mine-to-reactor' vertical integration model. This includes not only designing its 'ZEUS' and 'KRONOS' MMRs but also managing the fuel supply through its subsidiary, HALEU Energy Fuel Inc., and transportation via its Advanced Fuel Transportation Inc. arm. Securing a reliable enrichment pathway through LIST is the lynchpin of this integrated approach.
Jay Jiang Yu, Founder, Chairman, and CEO of NANO Nuclear Energy, commented on the partnership's goal to create a "vertically integrated, resilient U.S. nuclear fuel platform that supports innovation, energy security, and long-term value creation across the domestic nuclear ecosystem."
While the license marks significant progress, the path to commercial-scale HALEU production remains a long-term endeavor involving further technical development and regulatory approvals. NANO Nuclear aims for a commercial launch of its KRONOS reactor in the early 2030s. Wall Street analysts appear to see potential in the strategy, with a consensus price target of $46.67 on the stock, representing considerable upside from its current price of $33.13 as of Tuesday afternoon.