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Drilling Value in the Silver State
The U.S. Department of Energy announced a conditional $17.5 billion loan program Tuesday designed to accelerate the construction of 10 large-scale commercial reactors across the country, potentially cutting deployment timelines by up to three years.
Shares of Cameco Corp. (TSX: CCO / NYSE: CCJ) rose 2% on the news, bucking broader market weakness. The stock is now up more than 10% year to date, with a market capitalization of roughly $47.7 billion.
The loans — issued through the DOE’s Office of Energy Dominance Financing under the “American Nuclear Supply Chain Loans” initiative — are earmarked for five eligible projects, each hosting two reactors, for a total of 10 units.
The funding targets long-lead-time components: the big, expensive equipment that takes years to manufacture and deliver, and which has historically been one of the biggest bottlenecks to nuclear construction. By front-loading procurement and reviving dormant supply chains, the DOE aims to both drive down costs and shave up to three years off construction timelines.
“These conditional loans will play an important role in reviving the supply chain needed for America to once again build large-scale commercial reactors,” said U.S. Energy Secretary Chris Wright. “They will also help accelerate the timeline of building those large-scale reactors by up to three years, lowering construction costs and ensuring the United States is able to deliver on President Trump’s bold and ambitious energy addition agenda.”
There’s a catch, though. Each project will be jointly owned by Westinghouse and a utility or energy partner, and both parties must fully commit $500 million each in project equity — $1 billion total per project — upfront before accessing any DOE loan funds.
Westinghouse has signed letters of intent with seven potential partners, each with identified project sites.
At 1.1 gigawatts per reactor, the 10 AP1000 units would collectively generate enough electricity to power nearly 10 million American households.
The DOE’s loan program isn’t technology-agnostic. There’s really only one game in town right now for large-scale advanced commercial reactors in the U.S.: Westinghouse Electric Co.’s AP1000.
It’s the only design currently licensed for large-scale advanced commercial deployment in the country — which means the entire $17.5 billion program is effectively built around Westinghouse’s technology.
This isn’t the first massive AP1000 order to land in recent months. Eight months ago, Westinghouse signed an $80 billion deal with the Commerce Department to build eight AP1000 plants. With this latest announcement potentially adding 10 more, the U.S. AP1000 fleet is scaling fast.
Globally, six AP1000 reactors are already in operation, setting records for performance and availability. Another 14 are under construction, and five more are under contract.
Here’s where it gets interesting for investors. Westinghouse isn’t a standalone public company. It’s co-owned by Brookfield Renewable Partners and Cameco — with the Canadian uranium producer holding a 49% stake.
The acquisition, completed in 2023, puzzled some onlookers at the time. Why would a uranium miner buy a reactor company?
In hindsight, it looks like a masterstroke.
Cameco isn’t just a uranium play anymore. It’s positioned across the entire nuclear fuel cycle: mining, refining, conversion, fuel manufacturing — and now, reactor technology, engineering services, and plant construction. From mine to megawatt, every link in the chain feeds Cameco’s bottom line.
When the U.S. builds more reactors, Cameco wins on multiple levels. It sells more uranium. It sells more fuel and conversion services. And its 49% share of Westinghouse captures the upside from reactor sales, construction, and long-term service contracts.
“We are pleased to see the U.S. government make this additional commitment to expanding nuclear power capacity using the proven AP1000 reactor technology,” said Cameco CEO Tim Gitzel in a statement. “When combined with the May 23, 2025, executive orders and other U.S. government initiatives, we believe the right incentives are being created to advance the rapid deployment of AP1000 reactors in the U.S.”
“The expansion of nuclear power in the United States is expected to create significant opportunities for Westinghouse and Cameco, accelerating growth in Westinghouse’s energy systems segment during the procurement and subsequent construction phase,” he added.
Translation: the orders are coming, and they’re ready to make money.
It helps that Cameco’s upstream business is already firing on all cylinders. As one of the world’s largest uranium producers, it owns interests in some of the highest-grade uranium assets on the planet in northern Saskatchewan, plus a stake in Kazakhstan’s Inkai mine. Together, these operations supply roughly 15% of global uranium production.
Uranium prices have been climbing, and the nuclear renaissance narrative has put Cameco’s mining division squarely in a secular upcycle. Add Westinghouse’s reactor business into the mix, and you get what investors call a double-barreled growth story.
The Trump administration’s goal is ambitious: quadruple domestic nuclear production over the next 25 years. The $17.5 billion loan package is just one piece of that puzzle. More policies, more projects, and more orders are likely on the way.
