BWXT snaps up $1.5 billion deal for naval nuclear propulsion

September 17, 2025, by Fatima Bahtić

BWX Technologies (BWXT) has been awarded a contract valued at $1.5 billion by the Department of Energy’s National Nuclear Security Administration (NNSA) to support the national mission of establishing a domestic uranium enrichment capability for defense purposes.

Under the contract, BWXT will initiate requirements to build the domestic uranium enrichment centrifuge experiment (DUECE) pilot plant.

This includes designing the facility, getting the required licenses, buying key equipment, preparing the site, proving its ability to manufacture centrifuges, and running the plant.

At first, the pilot plant will produce low-enriched uranium (LEU) for NNSA defense needs. Later, it will be converted to produce highly enriched uranium (HEU) for use in naval reactors. The plant will be built at BWXT’s nuclear fuel services site in Erwin, Tennessee.

To support this effort, BWXT started construction of its centrifuge manufacturing development facility in Oak Ridge, Tennessee, in June 2025. The Erwin pilot plant will utilize the centrifuges built in Oak Ridge.

“NNSA’s selection of BWXT for this project acknowledges our long-standing role as a trusted partner in advancing the nation’s nuclear defense mission,” said Rex D. Geveden, BWXT president and chief executive officer.

“Once operational, both facilities will enable us to scale manufacturing, so the United States maintains sovereign capability to produce vital nuclear materials for national security.”

The NNSA stated that “(p)artnering with commercial industry for this pilot plant helps to establish critical supply chains for enduring defense enrichment requirements and ensures capabilities are ready on time to support mission need dates.”

To remind, BWXT received US Naval Nuclear Propulsion Program contracts totaling approximately $2.6 billion, including future year options, for manufacturing naval nuclear reactor components in July this year.

The contracts primarily support Virginia and Columbia-class submarines, as well as some work for certain Ford-class aircraft carrier components.