High-Assay Low-Enriched Uranium: Drivers, Implications and Security of Supply

The potential deployment of small modular reactors (SMRs) is viewed by many countries as a transformative opportunity to support net zero objectives through various power and non-power applications. In this context, high-assay low-enriched uranium (HALEU) fuels, with enrichment levels between 5% and 20%, are expected to play a crucial role. However, commercial HALEU production in OECD countries is limited, and geopolitical uncertainties raise concerns about HALEU supply and potential disruptions to nuclear fuel supply chains. Historically, the nuclear energy industry has operated with enrichment levels up to 5%, with the associated supply chain, legal, and regulatory frameworks designed accordingly. This report aims to support policymakers in NEA member countries with evidence-based analysis on HALEU adoption. It explores the driving forces and implications of HALEU use, fosters a strategic vision for its role in achieving energy goals, optimising nuclear power operations, ensuring safety and security, and addressing natural resource utilisation. The report also provides considerations for developing a HALEU-based or HALEU-ready fuel cycle.