Uranium's Critical Comeback: The Debate Over Its Status and Global Demand

Uranium was removed from the U.S.'s list of critical minerals due to its classification as a 'fuel mineral,' but increasing global demand and geopolitical tensions have reignited discussions about its status. The nuclear power resurgence highlights the mineral's importance, emphasizing a need for reconsideration by authorities like the USGS.

The U.S. Geological Survey (USGS) decided in 2022 that uranium doesn't qualify as a critical mineral because it's a 'fuel mineral.' However, this decision is being challenged by former President Donald Trump, who wants it reconsidered to potentially unlock federal funds and fast-track domestic projects.

The debate arises amid a nuclear power resurgence, driven by global warming concerns and energy demands. Microsoft's agreement with Constellation Energy to rejuvenate a Three Mile Island unit underlines nuclear energy's renewed relevance, supported by more than 20 countries' pledge to boost nuclear power.

Uranium's market is stressed by an imbalance in supply and demand, compounded by geopolitical tensions such as the U.S.'s efforts to reduce reliance on Russian uranium. The mineral's high prices and concentrated global production, mainly from Kazakhstan, Canada, and Australia, further complicate the situation.

(With inputs from agencies.)