Many investors are likely familiar with the rapidly increasing demand for electricity, and the role nuclear power can play therein. AI investment has been the big story for the U.S. economy this year, creating massive demand for power, and many observers have looked to nuclear power to play a key role given its reliability and carbon-free power generation. Ramping up that nuclear power capacity is complicated in a country that has only added three large reactors since 1996. But recent news from the U.S. military may jump start nuclear power infrastructure supply chains.
The military announced this week that it will deploy a commercial microreactor on a base within the next three years. The announcement lines up with the president’s recent executive order directing the Department of Defense to open such a reactor by 2028.
“The U.S. Army is leading the way on fielding innovative and disruptive technology,” said Secretary of the Army Dan Driscoll, per Politico. “We are shredding red tape and incubating next-generation capabilities in a variety of critical sectors, including nuclear power.”
The Air Force has already established a contract with startup firm Radiant Nuclear to provide that military branch with a microreactor. Radiant is in the process of opening a dedicated microreactor production facility in Tennessee.
How Nuclear Tech Innovation Can Boost Investment
The moves come amid a nationwide push to embrace nuclear power, with microreactors an important frontier in nuclear technology. Despite continued division among policymakers at the Federal level, nuclear energy offers a rare area of bipartisan agreement. Both Biden and Trump administrations have made nuclear energy a priority to meet power needs while limiting emissions.
How, then, do microreactors change the nuclear energy and supply chain landscapes? According to the Idaho National Laboratory, one of 17 labs under the Department of Energy’s purview, microreactors’ smaller size and scalability make them an appealing option for a variety of energy needs.
Microreactor production, supported by government spending, could in turn see innovation and development in the sectors that make up the nuclear power supply chain. How, then, might investors want to get exposure to that evolving landscape? The Range Nuclear Renaissance Index ETF (NUKZ ) could help. The fund provides exposure to firms across that supply chain up to and including power generation companies. Looking ahead, the space may provide an appealing set of opportunities as demand continues to skyrocket.
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