Cameco Corporation and Brookfield Asset Management have entered into a strategic agreement with the United States Department of Commerce aimed at accelerating the global deployment of Westinghouse Electric Company’s nuclear reactor technologies. The agreement includes financial and regulatory support from the US government to facilitate the construction of new reactors on American soil, representing an investment of at least $80bn.
Public support to restructure the nuclear sector
The partnership aims to secure US energy supply while supporting the development of digital infrastructure, particularly for data centres and computing capacity related to artificial intelligence. The US government is committed to facilitating the necessary permits and organising financing for long lead time components essential to rapidly launch the projects.
According to the terms of the agreement, the US government will receive a participation interest in Westinghouse’s excess cash distributions, up to 20% beyond a $17.5bn threshold. This participation will only vest after a final commitment of at least $80bn in reactor construction is made.
Potential IPO tied to partnership conditions
The agreement also outlines a mechanism for equity conversion in the event of an initial public offering (IPO) of Westinghouse, provided that a minimum valuation of $30bn is reached before January 2029. The US government could then exercise a five-year purchase warrant for 20% of the IPO entity’s public value, net of the $17.5bn threshold.
Brookfield and Cameco acquired Westinghouse in November 2023, combining their respective expertise in nuclear fuel supply chains and global energy investment. This new agreement institutionalises their cooperation with US authorities in a move to revitalise the national nuclear industry.
Ripple effects on the nuclear supply chain
The construction phase is expected to boost Westinghouse’s energy systems division as well as its core fuel fabrication and reactor services activities across the full lifecycle of the installations. The company plans to promptly initiate orders for critical equipment. This acceleration is likely to reactivate industrial capacities previously mobilised during the construction of Vogtle units 3 and 4.
Cameco, as a major supplier of nuclear fuel, anticipates sustained demand growth in the US and globally. The company highlights its ability to reliably supply the components required for the long-term operation of Westinghouse reactors.
