Cameco Corporation announced that it has signed a binding term sheet with Brookfield Asset Management (Brookfield) and the United States Department of Commerce (US Government) to form a strategic partnership aimed at accelerating the deployment of Westinghouse Electric Company’s (Westinghouse) nuclear reactor technologies. The initiative seeks to strengthen nuclear power supply chains and revitalize the broader industrial base in the US and international markets.
Under the nuclear reactor deal, the US Government will coordinate financing and facilitate necessary permitting and approvals for new Westinghouse nuclear reactors to be developed across the United States. The total investment is valued at a minimum of US$80 billion and includes near-term funding for long lead-time components. Once operational, these reactors are expected to provide secure and consistent power to the US grid, supporting growing data center and computing capacity required for artificial intelligence expansion.
“We are pleased to see the US government make this commitment to expanding nuclear power capacity using Westinghouse’s proven technology. We expect that our highly successful partnership with Brookfield as owners of Westinghouse will be further strengthened through this strategic collaboration with the US Government,” said Tim Gitzel, CEO of Cameco. “At the center of this new partnership is value creation. When coupled with the May 23, 2025 Executive Orders, we believe the US Government’s participation in the partnership creates the right incentives to deploy its full suite of tools behind the construction of Westinghouse reactors, including financial, regulatory, policy and diplomatic support. That support is expected to drive additional value for the partnership and the many stakeholders who are expected to benefit from enhanced energy, national and climate security around the world.
“We expect that the new build commitments from the US will bolster broader confidence in the durable growth profile for nuclear power, and support increased demand for Westinghouse’s and Cameco’s products, services and technologies. This new partnership highlights the role that Westinghouse’s reactor technologies, based on fully designed, licensed and operating reactors, are expected to play in the planned expansion of nuclear capacity and diversification of global nuclear supply chains. Cameco remains well positioned as a secure and reliable supplier that can fuel the long-term reliable operation of Westinghouse’s technology in the US and globally.”
The construction of new Westinghouse nuclear plants is expected to stimulate growth within the company’s energy systems segment, including its core fuel fabrication and reactor services operations. Following the close of the transaction and completion of financing arrangements, Westinghouse plans to begin executing project orders for essential long lead-time equipment, drawing on supply chains previously developed during construction of Vogtle units 3 and 4. Cameco, one of the world’s biggest suppliers of uranium and nuclear fuel, is expected to gain from the rising demand for nuclear energy that this partnership aims to create.
Under the nuclear reactor deal, the US Government will take a participation interest (Participation Interest) that gives it the right to receive 20% of any cash distributions over US$17.5 billion once it vests. The interest will vest only after the government makes its final investment decision and signs binding agreements to move ahead with new Westinghouse reactors worth at least US$80 billion.Furthermore, if the Participation Interest vests by January 2029 and Westinghouse’s valuation in an initial public offering (IPO) reaches or surpasses US$30 billion, the US Government will have the option to require an IPO. Prior to or during such an IPO, the Participation Interest will convert into a five-year warrant to purchase equity representing 20% of the public value of the IPO entity after subtracting US$17.5 billion.
Brookfield and Cameco finalized their acquisition of Westinghouse in November 2023, bringing together Brookfield’s track record in energy investments and Cameco’s long-standing strength in the nuclear fuel supply chain. The term sheet will stay in effect as the parties work out final agreements, which still need regulatory approval and other standard closing steps.