TLDR
- Cameco and Brookfield signed an $80 billion nuclear reactor partnership with the U.S. Department of Commerce
- The government will arrange financing and approvals for new Westinghouse reactors across America
- Federal government gets 20% of Westinghouse cash distributions above $17.5 billion after $80 billion investment
- Cameco stock surged 18% while Brookfield shares gained 2.9% on the announcement
- New reactors will power U.S. energy grids and AI data centers
The U.S. Department of Commerce has formed a partnership with Cameco and Brookfield Asset Management worth at least $80 billion. The agreement will fund and approve the construction of Westinghouse nuclear reactors throughout the United States.
The partnership was announced Tuesday morning. Cameco and Brookfield jointly own Westinghouse Electric after acquiring the company in November 2023.
Brookfield holds a 51% stake in Westinghouse. Cameco owns the remaining 49% of the nuclear technology company.
Under the agreement terms, the federal government will arrange project financing. The Commerce Department will also facilitate permitting and regulatory approvals for the reactor construction.
Stock prices responded quickly to the news. Cameco shares jumped 18% on Tuesday while Brookfield stock climbed 2.9%.
Government Profit-Sharing Agreement
The deal includes a financial arrangement that benefits the federal government. Once Westinghouse completes $80 billion in reactor investments, the government receives 20% of cash distributions exceeding $17.5 billion.
The agreement also covers a potential Westinghouse stock market listing. If the company pursues an initial public offering valued at $30 billion or more by January 2029, the government can demand the IPO proceed.
The government would then receive a warrant to purchase a 20% equity stake in Westinghouse. This participation interest vests after the government makes a final investment decision on the projects.
The parties are currently working with a binding term sheet. A Cameco spokesperson confirmed that definitive agreements will replace this initial framework.
Many details require finalization between all parties. The exact source of the $80 billion in financing remains unclear at this time.
Energy for AI and Power Grids
The new Westinghouse reactors will supply electricity to multiple destinations. Power will flow to the U.S. energy grid for general consumption.
The reactors will also provide dedicated energy to artificial intelligence data centers. These facilities require massive amounts of reliable electricity to operate.
The partnership follows President Donald Trump’s May executive orders on nuclear energy. Those directives aimed to speed up reactor permitting processes and boost domestic uranium production.
Commerce Secretary Howard Lutnick emphasized the government’s commitment to nuclear technology advancement. He described the partnership as supporting national security and strengthening critical infrastructure.
Cameco CEO Tim Gitzel said the deal will increase confidence in nuclear power expansion. The agreement showcases Westinghouse’s reactor technology for planned nuclear capacity growth.
Westinghouse will use its existing reactor designs for the project. These systems are fully designed, licensed and already operating at various locations.
The reactors are part of efforts to diversify global nuclear supply chains. The U.S. government views expanded nuclear capacity as essential for energy independence and technological competition.
The partnership represents one of the largest nuclear energy commitments in recent U.S. history. Construction timelines and specific reactor locations have not been disclosed.
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