Nuclear Renaissance: Surge in Reactor Constructions to Boost Metal Demand

Nuclear

As global nuclear energy capacity is projected to hit record highs by 2025, the demand for specific nonferrous metals critical for reactor components is set to soar.

Expanding Global Nuclear Capacity

According to the International Energy Agency (IEA) based in Paris, there are currently 63 nuclear reactors under construction worldwide, totaling over 70GW of capacity. This level of development, one of the highest since 1990, heralds a new era for nuclear energy, supported by the extension of lifetimes for over 60 reactors globally in the past five years.

Metals Critical to Nuclear Technology

The increasing number of nuclear reactors, particularly those based on recent Chinese and Russian designs, is driving demand for metals such as zirconium alloy and hafnium. Zirconium alloy, known for its low neutron absorption rate and resistance to heat and corrosion, is essential for nuclear fuel rod cladding. Conversely, hafnium, which absorbs neutrons at a high rate, is pivotal in control rods that regulate the nuclear fission process.

Future Trends in Metal Demand

With the nuclear sector's expansion, the need for these metals is expected to rise sharply. The IEA also notes significant upcoming demand from sectors like data centers, driven by digitalization and AI advancements, although current electricity use by data centers is relatively modest compared to sectors like electric vehicles. Hafnium demand in the nuclear industry is estimated to grow by 4% annually, with additional increases expected in aerospace and non-aerospace superalloys.