Nuclear Sector Gains Momentum as Taiwan Eyes Reactor Restart and Canada Advances Uranium Mine

A wave of developments across the nuclear landscape is reshaping a market already pressed by tight supply and a growing energy appetite from AI-driven demand. Taiwan signals a potential return to nuclear baseload power, while Canada moves ahead with a major uranium project—the two shifts come as the VanEck Uranium+Nuclear Energy ETF (NLR) navigates a consolidating market backdrop.

East Asia signals a policy pivot
Taiwan has indicated that two previously shut-down reactors may meet the conditions needed for reactivation. The island nation, which only last year shut its most recent reactor, is facing an escalating electricity drawdown to support energy-intensive computing needs in data centers. If safety reviews pass muster, the Ma-anshan plant could be reconnected to the grid as early as 2028. The move marks a stark shift from prior government policy and underlines a broader view that CO2-light base-load power is essential in the era of AI-driven demand.

Canada clears a path for new uranium supply
On the supply side, Canada has granted a key permit that advances the Wheeler River project in the Athabasca Basin. Denison Mines is the beneficiary of the approval, which constitutes the first clearance for a major uranium mine in Canada in more than two decades. The project relies on in-situ recovery (ISR), a method not previously deployed at such scale in Canada. Official construction is slated to begin in March 2026, with first production anticipated by mid-2028. Annual output could reach as high as 12 million pounds of uranium concentrate.

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Persistent supply gaps amid a tightening market
Even as Denison’s project moves forward, the global uranium picture remains undersupplied. The largest producer, Kazatomprom, plans to trim its output for 2026 by roughly 10%, a move that effectively removes about 5% of worldwide uranium supply. In parallel, the IEA expects annual investments in nuclear energy to triple to roughly $210 billion by 2035. Beyond supply dynamics, more than 60% of investors view electricity usage by AI as a long-term, structural driver for the sector.

The VanEck uranium fund sits in a consolidating phase
The VanEck Uranium+Nuclear Energy ETF (NLR) traded at $131.85, reflecting ongoing market consolidation. The fund currently trades about 20% below its 52-week high seen in January, as investors weigh the implications of new supply to meet a rising demand backdrop. The Taiwan and Canada developments help reinforce the fundamental thesis for uranium and nuclear energy in the near to medium term, particularly as physical uranium availability again comes into focus with ongoing project starts like the Wheeler River initiative and related upstream activity such as the Phoenix Project in Canada.

Broader implications for the uranium market
Together, these developments underscore a broader reorientation toward securing physical uranium and restoring capacity in the near term, even as the sector contends with a tighter global supply environment. The combination of potential Taiwan reactivation and Canada’s new mine project highlights the sector’s evolving risk-reward landscape amid structural demand growth driven by AI-related electricity consumption and a strategic push toward lower-carbon baseload generation.