For example, if Biden is promoting the production of nuclear power, then uranium stocks are more likely to increase in price. Politics: each political leader may have a different stance on fossil fuels, nuclear power and renewable energy.Natural disasters: natural disasters or accidents involving uranium or nuclear production, such as the Fukushima disaster, will most likely have a negative impact on the price of uranium, due to negative market sentiment.Therefore, uranium stocks may make an attractive investment for those that are interested in making more environmentally conscious decisions. Environment: nuclear power generation is generally seen as cleaner and more eco-friendly than fossil fuels.Although many power plants are not in use anymore, each country that is part of the Paris Agreement must adhere to the rules of producing at least 20-22% of its energy portfolio in nuclear power, which will raise the demand for uranium once again.Īs the world’s largest uranium consumer, US president Biden describes nuclear power as “critical clean energy technologies” and the country is striving to reclaim domestic uranium mining as one of its goals, rather than solely relying on imports from the biggest producers above.
Nevertheless, as you can see from the table above, the decline in nuclear production from developed countries such as Japan has paved the way for emerging economies such as Kazakhstan and Namibia to take charge of the uranium market. Because of this, the price of uranium has halved since 2011 and is struggling to regain its peak. All nuclear plants in the country were either closed down or operations were suspended, and other countries became wary of nuclear power generation also, cutting down on their own operations.
This resulted in the meltdown of its reactors and discharge of radioactive water, forcing residents to evacuate their homes.įollowing this disaster, Japan’s nuclear power production dropped from 30% to just 2%. In 2011, Japan’s Fukushima power plant was hit by a severe earthquake and tsunami in the region, causing the most severe nuclear accident since the Chernobyl disaster.
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