Uranium prices have climbed above $US100 per pound for the first time since early 2024, sparking renewed interest in Australia’s uranium sector.

According to a new report from BMI, a unit of Fitch Solutions, while short-term gains may have peaked, long-term fundamentals point to growing opportunities for Australian producers.

“Spot prices for uranium hit a ceiling in January 2026 after rallying more than 25 per cent,” BMI analysts said.

The current market is only modestly undersupplied, with production from Kazakhstan, Canada and Namibia expected to meet global demand for the next two to three years.

“We see a major structural deficit emerging in the uranium market by the early 2030s, as the nuclear renaissance of the 2020s meets the inevitable consequences of uranium’s post-Fukushima decade in the doldrums, which resulted in chronic underinvestment in new uranium supply,” BMI analysts said.

This positions Australia’s uranium sector to play a critical role in the global supply chain, with projects well placed to meet future shortages, including companies like Boss Energy or breakout companies Alligator Energy.

Alligator in recent news reported significant progress across its core uranium assets in South Australia, with a key construction plan completed on time and under budget.

The company’s Samphire pilot plant is now in a phase of final commissioning, with preparations for field recovery on track for the beginning of this year.

An upcoming trial is expected to generate vital operating and recovery data to support feasibility optimisation and future mining lease approvals.

This comes at a fitting time, as global nuclear capacity is expected to rise from 405 gigawatts (GW) in 2024 to 510GW by 2035, aided by small modular reactors and growing electricity demand, while production in major exporting nations may plateau in the early 2030s.

For Australian miners, the combination of rising global demand and constrained supply overseas creates a long-term opportunity to expand exports and secure a stronger foothold in the nuclear energy market.

Read more: Big Lake brings big rewards for Alligator