U.S. Government Partners With Cameco and Brookfield on $80 Billion Nuclear Reactor Deal

TLDR

• The U.S. Department of Commerce signed an $80 billion partnership with Brookfield Asset Management and Cameco to finance and approve Westinghouse nuclear reactors
• Brookfield owns 51% of Westinghouse while Cameco holds the remaining 49% stake
• The government will receive 20% of cash distributions over $17.5 billion once the $80 billion investment threshold is met
• Cameco stock jumped 18% and Brookfield shares rose 2.9% following the announcement
• The new reactors will supply power to the U.S. grid including AI data centers

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The U.S. Department of Commerce announced a partnership with Brookfield Asset Management and Cameco on Tuesday to deploy nuclear reactors across the United States. The deal commits to at least $80 billion in new Westinghouse Electric technology installations.

Brookfield owns 51% of Westinghouse while Cameco controls the remaining 49% after acquiring the company in November 2023. The government will arrange financing and facilitate permitting approvals for the reactor projects.

The reactors will generate power for the American energy grid. They will also supply electricity to artificial intelligence data centers.

Stock markets responded quickly to the news. Cameco shares climbed 18% on Tuesday while Brookfield stock increased 2.9%.

Cameco Corporation, CCJ

Government Revenue Structure

The agreement includes a revenue-sharing arrangement for the federal government. Once the $80 billion investment threshold is reached, the government will receive 20% of Westinghouse cash distributions exceeding $17.5 billion.

The deal also includes provisions for a potential Westinghouse initial public offering. If the company’s IPO valuation reaches $30 billion or more by January 2029, the government can require the offering.

Under those circumstances, the government would receive a warrant for a 20% equity stake in the company. The participation interest would vest after the government makes a final investment decision and enters definitive agreements.

A Cameco spokesperson told reporters that many details still need finalization. The parties expect to negotiate definitive agreements to replace the current binding term sheet.

It remains unclear whether the government will finance any portion of the $80 billion directly. The Department of Commerce has not yet provided additional details about the financing structure.

Policy Background

The agreement follows executive orders issued by President Donald Trump in May. Those orders aimed to expedite reactor permitting and expand uranium production in the United States.

Commerce Secretary Howard Lutnick stated the government is focused on rapid development and deployment of advanced nuclear technologies. He described the partnership as supporting national security objectives and enhancing critical infrastructure.

Cameco CEO Tim Gitzel said the new build commitments are expected to bolster confidence in nuclear power growth. He added that the partnership highlights the role of Westinghouse’s reactor technologies in planned nuclear capacity expansion.

The companies plan to use Westinghouse’s fully designed, licensed and operating reactor systems. These technologies are intended to support diversification of global nuclear supply chains.

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