Why Uranium Is the Critical Energy Play of 2026

As White noted, the uranium market entered 2026 with strong momentum. 2025’s focus on artificial intelligence (AI) created fundamental drivers for nuclear power as a viable energy source. That energy will be vital, given the current and forthcoming energy demand that AI requires. White noted that uranium climbed back into triple digits during the month of January, reaching $101.26 per pound to notch a 24% increase in a single month. From a technical standpoint, uranium’s price is moving past previous resistance levels thanks to tightening supply and increased strategic demand.

“Uranium demand is becoming increasingly visible, driven by energy security, electrification, and the need for reliable baseload power amid rising electricity demand,” White said.

Uranium’s status as a “critical material” is gaining further U.S. policy support, which should provide additional tailwinds. White mentioned a Section 232 proclamation that deemed current import levels as a potential threat to the national security of the United States. As such, the U.S. can negotiate with trading partners to adjust these import levels.

“The proclamation explicitly includes uranium in its description of the energy sector’s reliance on critical minerals for nuclear fuel, and it frames the vulnerability as overreliance on foreign supply chains, limited, secure and reliable access, and price volatility that can deter investment and weaken domestic capability,” White said. He mentioned that Section 232 is important because of the price optionality it brings to uranium with regard to any negotiations with trade partners.

“If negotiations ultimately result in measures that raise the effective price of securing uranium supply in the U.S., uranium could be pulled into a higher-incentive price framework,” White added. “A higher price would improve project economics and strengthen the long-term price visibility that underpins mine restarts and new development.”

As White also highlighted in the report, the uranium market remains in a structural deficit. Major producers have tightened exploration controls while global production continues to lag behind demand. To exacerbate the supply deficit further, the World Nuclear Association is forecasting that reactor requirements will more than double by 2040. That further supports the case for new mines.

Given these factors, one fund to consider is the Sprott Uranium Miners ETF (URNM ). URNM provides exposure to both physical uranium and its miners. It allows investors to add targeted commodities exposure to an existing portfolio in the ease of an ETF wrapper. URNM could also complement a growth-focused portfolio by adding commodities diversification.

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Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL

Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP.

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