Marketing Communication

Big Government Backs Nuclear

10 July 2025

Martijn Rozemuller

CEO – Europe

In a major policy shift, the US and several European governments are seeking to put nuclear energy at the heart of power generation.
With government expenditure accounting for a sizeable proportion of the economy, this policy shift is likely to drive growth.
The rise in enthusiasm for nuclear is already affecting share prices.

When the US administration directs companies to fast-track construction of nuclear reactors and quadruple nuclear generation by 2050, as it did in May 2025, it shows that atomic energy is finally back in vogue.¹ Around the globe, governments are reversing years of caution about atomic energy as they seek to put it back in the energy mix. Across Europe a rethink is also under way.

For investors, in an age when government policy shifts increasingly move markets, it’s worth taking note. To invest in markets today, it’s important to understand what governments are backing. If the US government is 35 to 40% of the nation’s economy and it backs a particular industry, one could infer that growth may follow, although this is not guaranteed.²

A Dash for Atomic Energy

Returning to the nuclear industry, governments are in a dash for atomic energy as they seek to solve three problems. They’re looking to build out nuclear energy capacity to fuel artificial intelligence, foster energy security and decarbonize power generation.

Trump signed four executive orders in May instructing the Department of Energy to start the construction of 10 large reactors by 2030 and help finance power upgrades to existing reactors. Other measures covered the boosting of US uranium mining and nuclear fuel capacity.

In Europe, the month of May also saw a sea-change policy shift from Germany as it dropped its long-held opposition to nuclear power in EU legislation.³ It has reportedly signaled that it will no longer block French efforts to ensure that nuclear is treated as a source of green power in EU legislation.

Indeed, there is a shift in policy across the continent. Countries including the Netherlands and Belgium have also embraced nuclear, having previously sought to close reactors. And Denmark is reconsidering a 40-year ban on nuclear power, analyzing the potential benefits of new nuclear technology.⁴

The UK government has announced £11.5 bn in new funding to complete a nuclear reactor called Sizewell C, which has been subject to years of delays and cost overruns.⁵ Like Denmark, the UK government is also exploring new technology in the form of Small Modular Reactors (SMRs). They can be built in factories and assembled on site, promising lower costs and shorter construction times.

Nuclear Stocks on the Rise

This rise in enthusiasm for nuclear is already affecting share prices. For instance, on the day Trump’s executive orders were announced, shares in Oklo, a SMR developer, jumped almost a fifth (23.6%).⁶ NuScale, which also designs SMRs, gained almost a fifth (19.4%).

Meanwhile, nuclear fuel company Centrus Energy’s share price rose by over a fifth (21.6%) and Cameco, the world’s largest publicly traded uranium company, increased by more than a tenth (11.1%).

Governments’ actions to boost nuclear power generation got reflected in the performance of our VanEck Uranium and Nuclear Technologies UCITS ETF, which has returned 42.1% this year at the time of writing.⁷ At the same time, investors should keep in mind the risks of investing in uranium/nuclear energy funds, especially those related to sector and individual stock concentration. Please refer to the KID and the Prospectus for other information and applicable risks before investing.

Performance	1 Month	3 Month	YTD	1 YR	Since Inception*
VanEck Uranium and Nuclear Technologies UCITS ETF	16.1%	66.1%	42.1%	58.4%	42.4%

* Periods greater than 1 year are annualized.
Source: VanEck, data as 30 Jun 2025. Inception date is 3 Feb 2023. Past performance is not indicative of future returns. Investing is subject to risk, including the possible loss of principal.

In an age when governments are taking a more active role in economies, and backing their policies with spending, their recommitment to nuclear is making waves.

¹ Trump signs executive orders to speed development of U.S. nuclear power. PBS, 23 May 2025.

² Source: IMF. US government expenditure was 36.28% of GDP in 2023.

³ Germany drops opposition to nuclear power in rapprochement with France. FT.com, 19 May 2025.

⁴ https://www.reuters.com/business/energy/denmark-is-considering-lifting-40-year-old-nuclear-power-ban-minister-says-2025-05-14/. Reuters, May 14, 2025.

⁵ UK pledges £11.5bn of new state funding for Sizewell C nuclear plant. FT.com, 10 June 2025.

⁶ Source for stock price rises: Donald Trump issues directive to fast-track nuclear energy development. 23 May 2025. FT.com. Past performance is not indicative of future returns.

⁷ Source: VanEck internal performance data, based on daily NAV, as at 30 Jun 2025. Past performance is not indicative of future returns. Investing is subject to risk, including the possible loss of principal.

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This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.

This information originates from VanEck (Europe) GmbH, which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin).

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