Canada’s Opportunity in Global Nuclear Energy Supply Chains

Canadian nuclear energy technology, services, and natural resources, if deployed successfully, strengthen international alliances through global supply chain dependencies. These dependencies support allies’ economic and environmental goals while providing leverage for Canada to reduce authoritarian influence. Russia’s invasion of Ukraine, rising global energy demand, and new technology in the nuclear energy sector, are catalysts for Canada to seek a greater share of global nuclear markets. Canada has the world’s largest deposits of high-grade uranium, has an established presence in the nuclear energy sector, and is on track to be the first G7 nation to have an operational Small Module Reactor (SMR). Canada is well positioned to expand its nuclear energy footprint. 

Dr. Kelsey Jack, Associate Professor in the Business and Public Policy group at the University of California, Berkeley’s Haas School of Business, and co-chair of the Energy, Environment, and Climate Change sector at the Abdul Latif Jameel Poverty Action Lab at the Massachusetts Institute of Technology, recently provided an insightful overview of the current state of knowledge on energy infrastructure. Speaking at a conference hosted by the World Bank and the International Growth Centre, she emphasized that “energy is tightly linked to economic development.” Canadian nuclear exports can support trade partners economic growth while supporting carbon emission reduction policies. Canada’s nuclear exports build positive relationships with foreign nations that create long term dependencies with Canada’s nuclear energy sector. These relationships can advance Canada’s national interests, while contributing to global stability.  

However, those same nuclear exports can be used for nuclear weapon research and production. Historically, Canada has a degree of accountability in the spread of nuclear weapons. India’s 1975 detonation of a nuclear device illustrated how Canada’s CANDU reactor technology could be used for non-peaceful purposes (Goldemberg, 2009). Canadian exports can also increase the risk for nuclear weapon proliferation when exports create demand for enriched uranium. Uranium enrichment is a source of tension in nuclear politics because of the interoperability to produce materials that can be used for weapons and energy supply (Meserve, 2009). These risks should be accounted for as Canada expands its market share in the nuclear energy industry. 

Canada has partnerships with more than 40 countries to exchange services, goods, and information related to nuclear energy. These partnerships can be in the form of Nuclear Cooperation Agreements (NCAs), which are treaties governed by international law. Canada also establishes information sharing agreements with nations, often in the form of memorandums of understanding (MOUs). NCAs ensure that Canadian nuclear exports are properly protected, safely handled, and used for peaceful purposes, and that Canada maintains control over nuclear exports. MOUs provide parties with assurances regarding the security of information exchanged, as well as enhanced clarity about responsibilities regarding visits and costs related to cooperation initiatives. Looking at the partners Canada has NCAs and MOUs with, and tracking geopolitical events and topics, sets the stage for Canada’s nuclear energy sector. 

Canada has signed 17 information sharing agreements with foreign entities since the 2021 announcement of the intended construction and licensing of an SMR in Canada. In Darlington, Ontario, the first SMR in a G7 country, is expected to be operational in 2029. The project is spearheaded by Ontario Power Generation and supported by the Government of Canada. This will be a landmark achievement for the nuclear industry, creating a framework for SMR construction and regulatory process. Internationally, there are over 80 SMR designs in various stages of development. Recently, the International Energy Association (IEA)’s Executive Director Fait Birol recognized the importance of nuclear energy while praising Canada’s SMR initiatives saying “I would also like to make emphasis here and appreciate Canada's leadership in the context of SMRs…in all these areas and others, we at the IEA are very happy to support the Canadian government's efforts as it undertakes an ambitious clean energy transition."  Although different SMR models will have factors that result in varying risk assessments and uranium enrichment levels, Canada will benefit from being a first mover in the SMR sector. 

Russia’s full-scale invasion of Ukraine in 2022 has shifted energy markets, including in the nuclear sector. Prior to 2022, Ukraine purchased its uranium from Russia; today Canada provides that uranium. Russia's invasion of Ukraine has compelled the European Union to reduce energy dependence from Russian fossil fuels.  A clear alternative is nuclear energy. In 2023, Canada approved the provision of 3 billion dollars in export financing to Romania for two new CANDU reactors, and signed an agreement with Poland for the sharing of information related to SMR operations and regulatory support. In 2024, Canada increased support to Poland’s nuclear industry by signing a Letter of Interest for up to 1.45 billion dollars in potential financing to support the sale of goods and services by Canadian suppliers to build Poland’s first nuclear power plant. Canada’s nuclear sector can expect increased trade because of Russia’s invasion of Ukraine.

In 2024, the U.S. announced a framework to add 35GW of U.S. nuclear energy capacity to its energy grid by 2035. Canada’s high-grade uranium, its pre-existing NCA with the U.S., and its first mover advantage in the SMR sector, give Canada an opportunity to aid its largest trade partner and closest ally in accomplishing specific pillars in the framework, including developing fuel cycle supply chains, and building SMRs. Canadian-American business partnerships are well positioned to support fuel cycle development and new SMR construction. In 2025, U.S. President Donald Trump announced a private sector investment of up to $500 billion to fund infrastructure for artificial intelligence (AI), aiming to outpace rival nations in the business-critical technology. Nuclear power’s reliable baseload power pairs well with AI infrastructure and can be expected to benefit from America’s AI investments. 

Canada’s continued initiatives as a key figure in nuclear energy supply chains, fortifies its international presence in global affairs. By being a supplier of nuclear technology, services, and natural resources, Canada can be influential in international economic and environmental goals while limiting authoritarian influence. This is achieved by leveraging Canada’s high-grade uranium, nuclear energy industry expertise and technology, and well-established network of trade partnerships, to form reliable nuclear energy supply chains. 

*This article was written by a guest contributor