Uranium’s Catch Up Trade: Nuclear Power’s Next Decade of Demand

February 26, 2026 | (9 mins 11 secs)

Uranium is reemerging as a strategic energy asset as AI, data centers and energy security reshape global electricity demand. In this episode of Metals in Motion, Sprott Asset Management CEO John Ciampaglia explains why tight supply, government action, production incentivization and new reactor technology could drive a long-term bull case for nuclear fuel.

Video Transcript

Thalia Hayden: You're watching Metals in Motion. I'm Thalia Hayden with ETFguide. We're glad to have you with us. Joining us now is John Ciampaglia, CEO of Sprott Asset Management. Welcome, John. Great to see you again.

John Ciampaglia: Good to see you. Thanks for having me back.

Thalia Hayden: Let's begin with Sprott’s research team, which named uranium one of their top ten themes for 2026. From your perspective, what's driving this surge in interest around nuclear power, and how sustainable is that demand as we look to the next decade?

John Ciampaglia: It's been a very interesting seven or eight months in the world of uranium and nuclear energy. And we feel as though in 2026, we're going to see a catch-up trade play out in uranium after meandering around for most of last year. What's really driving it is this big shift in electricity right now. And that electricity is obviously coming from things like AI data centers, which we know consume large amounts of electricity. But there are also energy security considerations, as the world seeks to become less reliant on others for critical resources like electricity. And this is really giving a lot of tailwinds to the nuclear sector, including in the U.S., where the Trump administration recently announced a very large, public-private partnership that could see up to ten new reactors built in the U.S., which would be a real great milestone to catch up with what's happening in places like China, which is building an enormous amount of new capacity.

Thalia Hayden: Uranium supply has been tight for years now. Where do you see the most significant bottlenecks? Is it in mining, conversion or enrichment? And how might those constraints shape prices going forward?

John Ciampaglia: I think it's all of the above. That's why investors are looking at these market signals and getting interested in the entire supply chain. The U.S. needs to reshore a lot of critical mineral development—that’s mining and processing. There have been some interesting government developments in the last few weeks regarding something they're calling Project Vault, which is designed to incentivize more uranium production after much of it has been shut in due to sub-economic prices for many years. And this could also involve stockpiling strategic minerals like uranium, speeding up processing timelines for new mine permits, and investing in downstream parts of the fuel supply chain, such as enrichment. All these things are happening at once. I think it's one of the key reasons why investor capital is really starting to come back into the sector. We've seen strong inflows into several uranium-related ETFs over the last few months. And I think that's a very bullish sign that investors are confident this is not a short-term, transitory trend. This is going to play out over many years as these investments are made.

Thalia Hayden: How much of today's uranium thesis is tied to geopolitics and energy security concerns, especially given the concentration of enrichment capacity in just a few countries?

John Ciampaglia: It's a huge consideration. We've never seen this much government focus on creating more resilient supply chains, which means becoming less dependent on other countries, because we have seen instances where commodities are being weaponized. And what does that mean? Basically, a country can say, “I'm a supplier, and I've been supplying this key mineral to you for many years. But we're not friends anymore. We're going to restrict exports of a mineral, charge you more for it, or impose taxes and disincentives. So, it's more difficult for you to have security of supply.” That’s happening with rare earths and uranium. The U.S. is implementing Section 232 reviews, which assess the strategic value or risks of being dependent on other countries. And uranium has been identified, given that the U.S. largely imports most of its uranium from other countries. This will give uranium a big boost over the coming years, as governments make it a strategic priority. We're even seeing investments in publicly traded mining companies, which is very novel for the government to take equity positions in these companies in exchange for future production, to secure supply. And there's talk of a “Strategic Uranium Reserve,” as we have with the Strategic Petroleum Reserve and oil. Many interesting things are happening. Investors are getting very excited and responding to these market signals.

Thalia Hayden: Now, switching gears a bit, John. SMRs, also known as small modular reactors, are moving from concept to deployment. How do you see this technology reshaping long-term uranium demand compared to traditional large reactor build-outs?

John Ciampaglia: It's one of the most exciting developments in terms of new nuclear energy capacity. And we see many different applications coming. We won't see these new reactors come online until around 2030 or 2031. But there is significant pent-up demand and interest in this technology. These are basically some new-generation designs. 

Who's really pushing this? Some governments, including Ontario Power Generation, are building the first four. The Tennessee Valley Authority has authorized the construction of a few of these, but I think what's getting most people's attention are the hyperscalers. These are the Googles and Microsofts of the world, funding some of the startup companies designing these small modular reactors. It's starting to be incorporated into some future demand forecasts, but it's still quite nascent because the timeline to deploy and scale the technology is several years away. But investors are very forward-thinking and looking at their forecasts, and they're just starting to see that this could create even more demand for uranium in the coming years. This comes at a time when we already have a deficit for the existing fleet of operating reactors. This is something that we're watching very carefully. We're starting to get shovels in the ground, and this is becoming more of a reality than a concept. I think it's a very bullish sign, and it could play out for many decades as the technology is scaled and deployed.

Thalia Hayden: Great information, John. One last thing before you go: From an ETF standpoint, how should U.S. investors think about the differences between uranium ETFs that hold miners versus those that track physical uranium?

John Ciampaglia: It's a great question. I think most investors who research this sector come to the same conclusion we have: That the outlook is very bullish. And the long-term fundamentals look very attractive. So how do I express my view? How do I put that into action? There are two primary ways to invest: in companies that produce or mine uranium, or in the physical commodity itself. And you can do that with different vehicles. What we find when we talk to institutional investors is that they tend to own a combination of the two in some proportion, depending on their relative value. Sometimes the commodity can appear cheap, so to speak, relative to the stocks and vice versa. Our position right now is that the physical uranium looks a little cheap relative to uranium mining stocks. The stocks have had a really nice run over the last eight or nine months, while the commodity is playing a bit of a catch-up trade right now, but most investors tend to own both together. The stocks can be somewhat more volatile than the commodity, but both have a role to play in a portfolio, especially when it comes to comfort with volatility and risk.

Thalia Hayden: That makes sense. John, thank you so much. We appreciate your timely insights. Keep up the great work.

John Ciampaglia: Thanks very much.

Thalia Hayden: For U.S. investors, Sprott offers several ways to participate through ETFs linked to high-demand critical minerals such as uranium, rare earths, copper and more. Just visit SprottETFs.com for all the information. And that does it for today's episode of Metals in Motion. I'm Thalia Hayden with ETFguide. We hope to see you next time.