- Cameco (TSX:CCO; NYSE:CCJ) and Brookfield Asset Management (TSX:BAM) signed a term sheet with the United States Department of Commerce to strengthen the US nuclear supply chain
- The US Government will invest at least US$80 billion to build new nuclear reactors under the companies’ jointly owned Westinghouse Electric Company brand
- Cameco is one of the world’s largest uranium providers
- Cameco stock has added 58.22 per cent year-over-year and 857.82 per cent since 2020
Cameco (TSX:CCO; NYSE:CCJ) and Brookfield Asset Management (TSX/NYSE:BAM) signed a term sheet with the United States Department of Commerce to strengthen the US nuclear supply chain.
The partners intend to expand the reach of Westinghouse Electric Company’s nuclear reactor technologies, both domestically and abroad, with the US Government set to invest a minimum of US$80 billion in new nuclear reactors to reinforce the domestic power grid and better meet artificial intelligence’s demand for computing capacity.
The investment will entitle the US Government to receive 20 per cent of any cash distributions over US$17.5 billion generated by the reactors. Additionally, should Westinghouse reach a minimum US$30 billion valuation, the government will have the right to require an initial public offering and acquire 20 per cent of the offering after deducting US$17.5 billion from the total valuation.
Westinghouse expects the deal to support the growth of its energy systems segment throughout the life of the reactors, with initial equipment orders expected to begin imminently.
Cameco, as one of the top uranium suppliers and nuclear service providers, believes the deal better positions it to capitalize on an expected ramp-up in demand for nuclear power.
Brookfield and Cameco, which acquired Westinghouse Electric in November 2023, will now focus their attention on negotiating a definitive agreement with the US Government to set a firm foundation on the path to production.
Management commentary
“We are pleased to see the US government make this commitment to expanding nuclear power capacity using Westinghouse’s proven technology. We expect that our highly successful partnership with Brookfield as owners of Westinghouse will be further strengthened through this strategic collaboration with the US Government,” Tim Gitzel, chief executive officer of Cameco, said in Tuesday’s news release. “At the center of this new partnership is value creation. When coupled with the May 23, 2025 Executive Orders, we believe the US Government’s participation in the partnership creates the right incentives to deploy its full suite of tools behind the construction of Westinghouse reactors, including financial, regulatory, policy and diplomatic support. That support is expected to drive additional value for the partnership and the many stakeholders who are expected to benefit from enhanced energy, national and climate security around the world.”
“We expect that the new build commitments from the US will bolster broader confidence in the durable growth profile for nuclear power and support increased demand for Westinghouse’s and Cameco’s products, services and technologies,” Gitzel added. “This new partnership highlights the role that Westinghouse’s reactor technologies, based on fully designed, licensed and operating reactors, are expected to play in the planned expansion of nuclear capacity and diversification of global nuclear supply chains. Cameco remains well-positioned as a secure and reliable supplier that can fuel the long-term operation of Westinghouse’s technology in the US and globally.”
About Cameco
Cameco is one of the world’s largest uranium providers. Based in Saskatoon, Saskatchewan, the company’s presence extends across the nuclear fuel cycle, including controlling interests in top high-grade reserves and low-cost operations in Canada, Australia and Kazakhstan.
Cameco stock (TSX:CCO; NYSE:CCJ) last traded at C$121.26. The stock has added 58.22 per cent year-over-year and 857.82 per cent since 2020.
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