• $1.5-billion project planned at Energy Department site
• General Matter plans to start enriching by 2030, needs US license
• US hopes to wean itself off Russian uranium

Aug 5 (Reuters) - (This Aug 5 story has been corrected to change the project start date to the end of the decade, not 2034, in paragraph 3)

General Matter, a U.S. startup hoping to enrich uranium for fueling nuclear reactors, signed a lease with the Department of Energy on Tuesday to build a facility at a former federal plant in Kentucky.

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The $1.5-billion project will be at the former Paducah Gaseous Diffusion Plant. The U.S. built the site in the 1950s to produce enriched uranium, initially for nuclear weapons. The facility later produced enriched uranium for nuclear reactors, but closed in 2013.

Construction is expected to begin in 2026, with enrichment operations planned to begin by the end of this decade, the DOE said. The plant is expected to create about 140 permanent jobs, the company said.

General Matter CEO Scott Nolan said reactivating the site would "power a new era of American energy independence." General Matter held a ceremony in Paducah attended by Kentucky Governor Andy Beshear, U.S. senators and representatives, and DOE officials.

The company did not say how much enriched uranium it will produce.

While UK-based Urenco has the capacity to supply about a third of U.S. commercial reactor needs of enriched uranium from a plant in New Mexico that is expanding, the U.S. is heavily dependent on foreign suppliers, including Russia.

Former President Joe Biden put a ban on Russian enriched uranium imports that allows waivers until 2028.

General Matter is one of several companies that have received DOE grants to produce both low-enriched uranium, or LEU, and a special fuel called high-assay low-enriched uranium, or HALEU. The companies need to get licenses from the Nuclear Regulatory Commission. HALEU could be used in high-tech reactors that plan to start operating around 2030.

General Matter did not reveal the technology it plans to use to enrich uranium, nor the funding of the project. It said this year it was "incubated within" Founders Fund, a venture capital fund, in which Nolan is a partner.

The DOE said the lease provides General Matter with at least 7,600 cylinders of uranium hexafluoride to supply fuel that can be enriched into reactor fuel. The process will save Americans about $800 million in avoided disposal costs, the DOE said.

Global Laser Enrichment, a company owned by Silex Systems (SLX.AX) , opens new tab and Cameco (CCO.TO) , opens new tab that is one of six that won initial U.S. contracts to produce domestic uranium fuel, also plans to enrich uranium in Paducah. It plans to use lasers to enrich rather than centrifuges.

"From a standpoint of technology readiness, from the regulatory timeline, no one's going to get an NRC license quicker than us," Nima Ashkeboussi, GLE vice president of government relations, said in an interview.

GLE plans to enrich tailings, or waste byproducts left over from the DOE's enrichment programs.

General Matter said the "vast majority" of the uranium it will enrich will be from domestic sources. The DOE is reserving tailings for it to enrich in the event of supply shortages, it said.

https://www.reuters.com/business/energy/general-matter-signs-lease-with-us-energy-department-enrich-uranium-2025-08-05/