US government launches $17.5B loan program to accelerate nuclear buildout

In a boost to Cameco‘s (TSX: CCO; NYSE: CCJ) Westinghouse joint venture, the United States Department of Energy (DOE) said it’s planning to provide $17.5 billion in loans to accelerate the nationwide buildout of 10 large-scale commercial nuclear reactors by up to three years.

The funding — issued by the Office of Energy Dominance Financing (EDF) — is designed to help five eligible projects in their procurement of long-lead-time items needed to build these large nuclear power plants, the DOE said Tuesday in a statement.

Westinghouse, which builds the AP1000, the country’s only licensed large-scale advanced commercial reactor, will partner with selected companies to procure long-lead items at a fixed price and will have joint ownership in each project.

The announcement is positive for Cameco, “primarily through improved visibility and earlier realization of Westinghouse earnings,” TD Securities mining analyst Craig Hutchison said Tuesday in a note. “The financing structure enables accelerated procurement of long-lead items, effectively pulling forward higher-margin revenue.”

Cameco shares rose 3.2% to C$156.54 Tuesday afternoon in Toronto, valuing the company at about C$68 billion ($48 billion). The stock has traded between C$93.40 and C$182.72 in the past year.

Five projects

Dubbed the “American Nuclear Supply Chain Loans,” the initiative builds on President Donald Trump’s executive order last year to reinvigorate the U.S. nuclear industrial base.

“Just over one year ago, President Trump directed the Energy Department and its agency partners to unleash the next American nuclear renaissance,” said U.S. Energy Secretary Chris Wright. “To accomplish that mission, these conditional loans will play an important role in reviving the supply chain needed for America to once again build large-scale commercial reactors.”

The $17.5 billion funding would be allocated towards five energy projects — each supporting two nuclear reactors at its site — for a total of 10 reactors, the DOE said.

Westinghouse and its partner will be required to fully commit their project equity of $500 million each — or $1 billion total per project — upfront prior to accessing DOE loan funds. Purchasing for each project will be staggered based on the timing of equity commitments and other relevant factors.

Westinghouse has signed letters of intent with seven potential partners, each with identified project sites, the DOE said.

Strong commitment

According to the Department, each of the AP1000 reactors will generate 1.1 gigawatts of power, with the combined power output from all 10 reactors providing enough electricity to power nearly 10 million American households.

The loan facilities’ bulk equipment purchase order structure creates a strong commitment to restarting the nation’s nuclear industry by providing the necessary financing for rebuilding the American nuclear supply chain, the DOE said.

The loan facilities will drive down costs for individual nuclear components, create significant supply chain efficiencies and shorten timelines for nuclear deployment by up to three years, according to the DOE.

AP1000 commitment

To be sure, the funding package announced Tuesday remains a conditional commitment, subject to technical, financial and regulatory milestones as well as final agreement with project partners. “While Cameco highlights no assurance of completion, we view the probability of advancement as high given broader U.S. policy support and recent nuclear-focused initiatives,”Hutchison wrote.

The loan commitment comes eight months after Westinghouse — co-owned by Cameco and Brookfield Renewable Partners — signed an $80 billion deal with the Department of Commerce to build eight AP1000 power plants. Discussions on the strategic partnership with the Department of Commerce in October are advancing, Cameco said Tuesday in a separate statement.

“We are pleased to see the U.S. government make this additional commitment to expanding nuclear power capacity using the proven AP1000 reactor technology,” Cameco CEO Tim Gitzel said.

“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.”