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Solstice Advanced Materials Expands Uranium Conversion Production

Solstice Advanced Materials, listed under NASDAQ as SOLS, has taken significant steps to expand its uranium conversion production at its Metropolis Works facility located in Illinois. This move comes in response to a growing demand within the nuclear industry, which anticipates a production of over 10 kilotonnes of uranium hexafluoride (UF6) in the year 2026.

The anticipated output represents a robust 20% increase from the planned capacity in 2024. This expansion underlines Solstice's commitment to supporting its nuclear industry customers, many of whom are established utility companies in the U.S. The impetus for this growth is not just the increase in customer orders, but also the robust policy objectives of the United States, aiming to quadruple its nuclear energy capacity by 2050.

Solstice's Metropolis Works facility holds a unique position, as it is the sole UF6 conversion facility in the U.S. This site has an impressive backlog exceeding $2 billion, resulting from consistent orders from clients who are keen to secure supplies of this crucial component in the nuclear fuel supply chain. To bolster production further, Solstice is exploring strategic debottlenecking initiatives and potential investments for increased capacity at this facility.

In alignment with these goals, the company has partnered with a respected engineering and procurement firm to conduct a preliminary analysis for new expansion projects. Additionally, discussions for long-term supply agreements with existing customers are underway, aiming at cementing Solstice's foothold in the industry.

David Sewell, President and CEO of Solstice, stated, "We are elevating our UF6 production in light of strong customer demand with the backing of disciplined investments and enhanced operational practices at our Metropolis Works facility. With over six decades of operational excellence and proprietary knowledge, we are strategically poised to meet the needs of the expanding industry."

The conversion process at Solstice's facility involves taking uranium ore concentrate sourced from global mines and transforming it into UF6. This process is renowned for its efficiency and reliability, and after conversion, the UF6 undergoes enrichment and is subsequently converted into nuclear fuel by partner service providers. This fuel is instrumental in powering reactors, which generate nearly 20% of the electricity consumed in the United States.

The facility's operations are further supported by ConverDyn, a joint venture between Solstice and General Atomics, serving as the exclusive marketing entity for all UF6 produced. This collaboration is fortified by a license from the U.S. Nuclear Regulatory Commission, which is valid up until 2060, ensuring stability in its operations.

In summary, Solstice Advanced Materials stands at the forefront of a crucial sector, actively expanding its capabilities to meet a burgeoning demand for nuclear resources. With strategic planning and investment, the company is well-equipped to enhance its production capacity in alignment with national energy goals and customer needs.