Cameco Corporation and Brookfield Asset Management have entered into a binding term sheet with the U.S. Department of Commerce to establish a strategic partnership aimed at accelerating the deployment of Westinghouse Electric Company’s nuclear reactor technologies. The collaboration is expected to strengthen domestic and international nuclear supply chains and revitalise the nuclear energy industrial base.
Under the agreement, the U.S. Government will help facilitate financing, permitting, and approvals for the construction of new Westinghouse reactors in the United States, representing an aggregate investment of at least US$80 billion. The reactors are intended to supply reliable power to the U.S. grid, including meeting the growing energy demands of data centres and artificial intelligence infrastructure.
Cameco Chief Executive Officer Tim Gitzel said the partnership aligns with recent U.S. government efforts to expand nuclear capacity, noting that the collaboration could enhance energy security and long-term growth for the nuclear industry.
The new build programme is expected to drive growth across Westinghouse’s energy systems, fuel fabrication, and reactor services businesses. With government-facilitated financing, Westinghouse plans to begin project execution and place orders for critical long lead-time components, drawing on the existing nuclear supply chains developed during the Vogtle Units 3 and 4 projects.
As part of the partnership structure, the U.S. Government will be granted a 20% participation interest in future cash distributions from Westinghouse exceeding US$17.5 billion, once it makes a final investment decision and enters into definitive agreements for the reactor projects. If the participation interest vests by January 2029, and Westinghouse pursues an initial public offering (IPO) valued at US$30 billion or more, the U.S. Government will have the right to require an IPO and convert its interest into a warrant to purchase 20% of the public value of the entity.
Brookfield and Cameco jointly acquired Westinghouse in November 2023, combining Brookfield’s global energy investment expertise with Cameco’s position as one of the world’s leading uranium and nuclear fuel suppliers.
The proposed agreements remain subject to regulatory approvals and customary closing conditions. The term sheet will remain effective until definitive agreements are concluded.
