As 2024 comes to an end, uranium spot prices have continued to hit new lows for the year, recently dropping to around $72 per pound, a significant decline from the 17-year high of $106 per pound reached in February. However, John Ciampaglia, CEO of Sprott Asset Management, predicts that uranium prices will rebound to the range of $90–$100 per pound by June 2025.
Sprott Asset Management operates the largest physical uranium investment fund globally, the Sprott Physical Uranium Trust (TSX: U.U, U.UN). In a recent report, the company’s ETF product manager, Jacob White, echoed this positive medium-term outlook, citing increasing geopolitical sensitivities as a key catalyst for uranium’s continued upward movement over time. However, he also noted that short-term volatility is likely to persist.
Despite the sustained decline in uranium prices throughout 2024, they remain historically high due to global energy crises and renewed emphasis on nuclear energy as a clean energy source. At the same time, uranium supply has struggled to keep pace with rapidly growing demand. Looking ahead, several factors are expected to drive uranium prices upward, including:
The rise of artificial intelligence (AI) and its widespread adoption are driving significant energy demand, especially from energy-intensive data centers. Nuclear energy is emerging as the preferred clean energy solution for such high energy needs. For instance:
Conventional renewable sources such as wind and solar are increasingly insufficient to meet the energy needs of AI data centers, noted Ciampaglia, making nuclear an attractive alternative for tech companies.
Donald Trump’s energy policies are expected to further influence the global uranium market. His administration’s emphasis on “strengthening domestic supply chains” could reshape the nuclear fuel supply chain, with Canada standing to benefit as a major uranium supplier. Canadian mining companies, such as Cameco (TSX: CCO; NYSE: CCJ), have already restarted previously suspended uranium mines and are planning new projects to seize emerging opportunities. In fact, Cameco has turned to the spot market to fulfill its contracts, highlighting the current supply-demand imbalance.
Even prior to the Trump presidency, uranium supply in the U.S. faced challenges. Earlier in 2024, President Joe Biden had signed legislation banning imports of low-enriched uranium from Russia, aiming to reduce reliance on Russian nuclear fuel. The U.S. government has also been investing in domestic uranium projects to stabilize supply.
The world’s attitude toward nuclear energy is becoming increasingly positive, supporting the long-term demand for uranium. At the 2023 United Nations Climate Change Conference (COP28), 22 countries pledged to triple global nuclear power capacity by 2050.
Key developments in nuclear energy strategies include:
The factors outlined—ranging from AI’s energy demands and geopolitical disruptions to countries’ net-zero goals and nuclear policy shifts—suggest a strong long-term case for uranium demand and higher prices. While near-term uncertainties may create volatility, the resurgence of nuclear energy globally positions uranium as a critical commodity for the future. By mid-2025, a rebound to levels of $90–$100 per pound seems increasingly plausible.