BWX Technologies said on Tuesday it had secured a $1.5 billion contract from the US National Nuclear Security Administration to develop domestic uranium enrichment capabilities for defence purposes.
The semi-autonomous nuclear agency, part of the Department of Energy, aims to establish a reliable supply of low-enriched uranium for tritium production and highly enriched uranium for naval nuclear propulsion, the NNSA said in a statement.
Under the contract, BWX said it will initiate the process to build the domestic uranium enrichment centrifuge experiment (DUECE) plant.
The scope of work includes designing the plant, applying for the necessary licenses, procuring long-lead equipment, and preparing the physical site. The production plant will be located in Erwin, Tennessee.
In July, BWX secured a $2.6 billion order to manufacture components for nuclear submarines and an aircraft carrier for the US Navy.
Shares of BWX were up 1.4 per cent in extended trading.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Mohammed Safi Shamsi)