When the Soviet Union launched Sputnik in 1957, it was a blow to Dwight D. “Ike” Eisenhower’s ego.
President Eisenhower couldn’t just stand by as the Soviets beat America into the new frontier of outer space.
So, he asked Congress to create a civilian space agency in the U.S. And he got his wish in 1958 when Congress voted to establish NASA.
The Space Race was on.
Next came Project Mercury, which sent America’s first astronaut into space in 1961 – and returned him safely home. And in 1969, Apollo 11 landed humans on the Moon for the first time.
Since then, the U.S. Space program has grown into a pillar of U.S. defense and scientific prowess. Today, the worldwide space industry is worth over $420 billion.
I’m telling you this because we stand at a similar inflection point today.
But this time, the frontier is not space – but energy independence. And the U.S. government’s best chance of achieving its energy independence goals is through nuclear energy.
That’s why I’ve been beating the drum on the nuclear energy revival – and the uranium fuel that will power it – for over a year.
In early 2023, I alerted readers to the rising global shift to nuclear. Uranium prices have more than doubled since then – from $48 to $106 a pound.
But I believe there’s much more upside for uranium and the companies involved in nuclear energy.
In fact, the nuclear revival is about to go into overdrive with the backing of the U.S. government. Just like the space program in the 1950s and ’60s.
See, hidden in 2,400 pages of new Washington legislation, there’s a roadmap for the next leg of the nuclear energy revival.
And that roadmap outlines two policies that will send nuclear energy stocks much higher. Let me explain…
Washington Just “Turbo-Tracked” These Two Acts
The government is not known for its efficiency.
And yet, right before Christmas, it fast-tracked two key pieces of nuclear legislation into law. I’d even call it turbo-tracked.
These are the ADVANCE Act and the Nuclear Fuel Security Act.
Both policies raced out of congressional sub-committees and straight into this year’s defense policy – the National Defense Authorization Act (NDAA) of 2024.
It was a major legislative leapfrog. It shows how crucial nuclear power, technology, and fuel are to U.S. national security.
The NDAA outlines U.S. defense policy. And it’s a big deal in Washington.
Defense and national security spending is the second-largest U.S. government budget item each year.
In 2023 alone, the government spent $816 billion on defense and national security.
Defense is also the largest discretionary spending item. That means Congress must agree on the NDAA and its budget every year.
And that’s what it did with the NDAA of 2024. That act was signed into law on December 22, 2023, with huge bipartisan support.
We’re still waiting for a companion act, the Budget Act of 2024, to be passed. Voting on this act has been postponed several times. But it’s due to take place by March 8.
Once that happens, funding for the NDAA will be greenlit. (Funding for these acts can’t be released until the full budget is approved.)
These nuclear policy aspirations are historic – like the space race of the 1950s and ’60s that ultimately landed Apollo 11 on the Moon.
But these acts are just the tip of the iceberg. I also learned behind closed doors in Congress that there will be more nuclear policies to come.
Right now, a bipartisan deal to overhaul the Nuclear Regulatory Commission (NRC) is in the works. The NRC is the main nuclear regulatory agency in the U.S.
Talks are focused on its licensing process. The overhaul could cut red tape and lower licensing fees for advanced reactors. These reactors are smaller, safer, and more efficient than older ones.
Advanced reactors could completely replace retiring coal plants. In fact, it wouldn’t take much to renovate those old coal plants and drop in advanced reactors.
This is important to many of the offices in Congress I remain in touch with, like Georgia Congressman Buddy Carter’s office.
The legislation would help build the NRC’s workforce to fast-track nuclear technology.
It can take up to five years to get through the review process for a new reactor. Anything faster than that is a win. And that’s what this legislation aims to accomplish.
It would also jumpstart the siting of nuclear facilities. And it would streamline the detection and processing of uranium supply domestically.
My sources in Washington tell me that these initiatives could be voted on during the first half of this year. That would light a fire under the NRC to work faster.
What This Means for Your Money Today
I’ve written before that uranium could eventually go as high as $400 a pound. To be clear, I don’t expect that to happen this year, or next, or even in the next five years.
But with demand for nuclear energy set to triple by 2050, and the nuclear revival gaining traction worldwide, it’s not out of the question in the long run.
The point is that this is a trend that is going to go on for a while. In the short term, as I told you in Friday’s mailbag edition, I expect uranium prices to go as high as $150 a pound this year.
I’m putting the finishing touches on a new presentation, where I’ll give details on my favorite ways to play the nuclear revival trend.
In the meantime, a simple way to take advantage of it is through the Global X Uranium ETF (URA). It’s a fund that provides access to companies involved in uranium mining and nuclear technologies.
It holds 46 companies, including Cameco, the Sprott Physical Uranium Trust Fund, and NexGen Energy. And it’s a great place to start your search.
Editor, Inside Wall Street with Nomi Prins