Silex Systems (ASX: SLX) has secured up to $28 million USD from the US Department of Energy (DOE) for its laser enrichment technology, bolstering its path towards domestic uranium production. This significant non-equity funding comes as the company continues to advance pilot testing and licensing for its Paducah Laser Enrichment Facility (PLEF) project, despite not being selected for a larger $900 million LEU award.
US DOE Funding Boosts Enrichment Tech
Global Laser Enrichment (GLE), the joint venture majority-owned by SILEX, has been awarded up to $28 million USD under the DOE Innovative Technology Award. This funding provides crucial non-equity support, aimed at advancing the development and potential commercialisation of its SILEX laser enrichment technology, particularly for the planned Paducah Laser Enrichment Facility (PLEF).
The company's progress was underpinned by achieving the Technology Readiness Level 6 (TRL-6) milestone in October 2025. This independent validation confirmed the technology's readiness for further scale-up, marking a significant step towards commercial deployment.
Missed LEU Award, Long-Term Potential
Despite the positive funding news, GLE was not selected for the larger DOE Leading Edge Nuclear Fuel (LEU) award, which could have provided up to $900 million USD. However, the long-term potential of the PLEF project remains substantial. The plan envisages re-enriching DOE depleted tails, potentially yielding up to 5 million pounds of uranium and 2,000 metric tonnes/year of conversion capacity for up to 30 years.
This projected output could be significant for US energy security, potentially supplying around 10% of current US nuclear reactor demand.
Progress on Paducah Facility and Licensing
SILEX and GLE continue to make headway on the Paducah Laser Enrichment Facility (PLEF) project. GLE has already acquired approximately 700 acres in Paducah, Kentucky, for the proposed facility.
The US Nuclear Regulatory Commission (NRC) has accepted GLE's licence application for the PLEF, with a formal review now underway. This regulatory process is a critical step towards the eventual construction and operation of the facility. Additionally, GLE has shown continued progress on pilot testing and in-house manufacturing capabilities at its Wilmington facility.
Broader Strategic Context
The developments for SILEX align with broader strategic goals in the US and other Western nations. Governments are increasingly focused on establishing secure, domestic nuclear fuel supply chains to reduce reliance on foreign sources, particularly from Russia.
SILEX's technology offers a "Triple Opportunity" for nuclear fuel production, aiming to produce natural UF6, Low Enriched Uranium (LEU)/LEU+, and High Assay Low Enriched Uranium (HALEU). This diversification addresses various segments of the nuclear fuel market. The company also secured a $130 million AUD institutional placement in August 2025, specifically to support its US commercialisation efforts via GLE.
Outlook Amidst Funding and Licensing
The DOE funding provides significant validation and near-term financial support for SILEX's laser enrichment technology, advancing its PLEF project. While missing the larger LEU award, the company's progress in technology demonstration and licensing remains critical, with future success contingent on regulatory approvals, project feasibility, and market dynamics.
