February 13, 2026

Uranium, energy security and the next phase of the energy transition

by Ewen Emmerson

in Insights Research Technology

Energy markets are undergoing one of the most significant structural shifts in decades. The transition toward lower-carbon energy systems is accelerating, yet the world’s growing electricity demand, particularly from electrification, digital infrastructure and artificial intelligence, is simultaneously increasing the need for stable, reliable baseload power.

This combination of rising demand and supply constraints has brought renewed attention to nuclear energy and, by extension, uranium.

Energy security returns to the forefront

Recent years have highlighted the strategic importance of energy independence and grid resilience. While renewable energy continues to expand rapidly, many countries are recognising that intermittent generation alone cannot meet long-term electricity requirements without complementary baseload sources.

Nuclear power provides:

• stable, low-carbon electricity generation,
• long operating lifespans for existing plants,
• and an increasingly important role in national energy security strategies.

As a result, several major economies have extended the operating lives of nuclear facilities, approved new reactor construction and committed to long-term nuclear capacity expansion.

A supply-demand imbalance years in the making

Unlike many other commodities, uranium supply has experienced years of under-investment, as low prices during the previous decade discouraged new production. Restarting mines, developing new projects and expanding enrichment capacity all require time and capital, meaning supply cannot adjust quickly to rising demand.

At the same time, demand visibility has improved meaningfully as long-term reactor build programmes expand and utilities seek to secure future fuel supply through forward contracting.

This combination of improving demand and constrained supply has led to a structural tightening of the uranium market, supporting long-term investment interest.

A structural theme within diversified portfolios

Exposure to uranium producers or related assets can offer investors participation in the energy security and electrification themes shaping the coming decade. However, like all commodity-related investments, uranium can be volatile and should be approached as part of a diversified portfolio rather than as a concentrated allocation.

Where included, uranium exposure is typically implemented through diversified global strategies and sized proportionately within broader real-asset allocations, ensuring portfolios remain balanced across economic scenarios.

Linking the investment case to the broader thesis

The growing importance of nuclear energy reflects a wider theme shaping the global economy: the renewed emphasis on physical infrastructure, reliable power systems and long-term capital investment. These forces sit alongside technological transformation and digitalisation, rather than in opposition to them.

As electricity demand rises and countries prioritise secure, low-carbon power generation, nuclear energy is likely to remain an important component of the global energy mix. For investors, this underscores the value of maintaining selective exposure to long-term structural trends while preserving diversification and risk discipline.

If you would like to discuss how these themes may affect your own investments or financial planning, please contact us to arrange a conversation with one of our advisers.

This article is for information only and does not constitute personal advice or a recommendation to buy or sell any security, fund or index. The value of investments can go down as well as up, and you may get back less than you invest. Past performance is not a guide to future returns. If you are unsure as to the suitability of any investment, please seek advice that takes your personal circumstances into account.