Ex SpaceX engineer’s startup General Matter seeks to produce US-made HALEU nuclear fuel to reduce dependence on Russia

Russia holds about 8% of the world’s uranium resources, yet it mines only around 5% of the global supply, as of 2021. Despite its smaller production scale, Russia dominates more critical stages of the nuclear fuel cycle. Currently, it stands as the sole commercial supplier of High-Assay Low-Enriched Uranium (HALEU), a fuel with enrichment levels of up to 20%—a significant leap from the 3-5% typically used in most nuclear reactors. This monopoly positions Russia strategically in the race for advanced nuclear technologies.

Enter General Matter, a San Francisco-based tech startup determined to change this dynamic. Founded by Scott Nolan, a former SpaceX engineer and partner at Founders Fund, the company aims to produce HALEU at a commercial scale in the United States and cut its costs dramatically. Nolan’s vision is to reduce reliance on Russian fuel and make advanced nuclear reactors more accessible.

Breaking Russia’s HALEU Monopoly

General Matter, established this year, is focused on producing HALEU for a new generation of atomic plants, including small modular reactors (SMRs), which are expected to gain traction by the 2030s. HALEU, enriched to 5-20%, offers the potential for greater efficiency in these high-tech reactors. In contrast, today’s nuclear reactors use uranium enriched to about 5%.

“We believe HALEU is the most urgent need in the market today, and the most sensitive to enrichment cost,”Nolan told Reuters in his first media interview since founding General Matter. “We are focused not only on bringing back domestic capacity, but on bringing the cost down significantly,” Nolan said.

The demand for HALEU is growing, with companies like Amazon planning to build reactors to power energy-intensive data centers. Nolan describes HALEU as “the most urgent need in the market today” and emphasizes the importance of significantly lowering enrichment costs.

General Matter’s long-term goal is to cut HALEU enrichment costs by half, addressing a market where estimates for HALEU hover between $25,000 and $35,000 per kilogram.

Backing from the U.S. Department of Energy

The U.S. Department of Energy is supporting domestic HALEU production, recently awarding initial contracts to four companies, including General Matter, as part of a broader $2.7 billion initiative. While the startup has yet to build the infrastructure for uranium fuel production, it faces competition from established players like Urenco USA, Orano USA, and Centrus Energy.

Addressing Concerns About Enrichment Levels

The higher enrichment levels of HALEU have drawn criticism due to potential security risks. Some experts advocate limiting enrichment to 10-12%. Nolan says General Matter will work closely with regulators to determine safe and appropriate enrichment levels.

Applying SpaceX Principles to Nuclear Innovation

Nolan’s experience at SpaceX, where he worked from 2003 to 2007, shapes his approach to General Matter. Drawing parallels, he highlights how SpaceX combined Silicon Valley expertise with aerospace innovation to rethink traditional challenges. General Matter adopts a similar model, blending knowledge from the nuclear industry with fresh perspectives from technology sectors.

While the startup remains tight-lipped about its production methods, Nolan suggests the company is exploring both proven and emerging technologies, such as centrifuges and laser-based uranium enrichment.

General Matter has a challenging road ahead, competing against established companies and navigating regulatory requirements. However, with its focus on cost reduction and technological innovation, the startup is poised to disrupt a critical segment of the nuclear fuel market. As the global demand for advanced nuclear technology rises, General Matter’s success could play a key role in shaping the future of energy.