BWXT to Invest $714.5 Million in Tennessee Depleted Uranium Plant for NNSA, Adding 181 Jobs

BWXT to Invest $714.5 Million in Tennessee Depleted Uranium Plant for NNSA, Adding 181 Jobs

BWX Technologies will invest $714.5 million to build a high purity depleted uranium metal plant in Jonesborough, Tennessee, and add 181 jobs, the Tennessee Department of Economic and Community Development said on Nov. 6, 2026. The Washington County facility will produce the material for the National Nuclear Security Administration, the Energy Department agency that manages the U.S. nuclear weapons enterprise. The state is backing the project with a grant from its Nuclear Energy Fund.

Key developments

  • BWXT plans a $714.5 million investment in Jonesborough to make high purity depleted uranium, or HPDU, metal for the NNSA, according to the state release.
  • The project will create 181 jobs, which the state said will more than double BWXT's current workforce in Jonesborough.
  • The plant supports a 10-year, $1.6 billion NNSA contract that BWXT received in September 2025 to design, license, build and operate an HPDU facility able to produce up to 300 metric tons a year.
  • Tennessee is providing an economic development grant through its Nuclear Energy Fund. This is BWXT's third project and the 12th overall to receive support from the fund.
  • Once complete, the facility will be the only active site able to perform this process for the federal government, according to BWXT and the state.

What high purity depleted uranium is and why it matters

Depleted uranium is the material left after natural uranium is processed to raise its share of the fissile isotope uranium-235. It is dense and has long been used in defense applications. The NNSA program calls for converting uranium oxide into usable, high purity metal, a step BWXT said was performed in the past at Jonesborough and at other U.S. sites but is no longer carried out at an active government site.

In its September 2025 contract announcement, BWXT said the scope covers plant design, licensing, procurement of long-lead equipment, site preparation and a demonstration of manufacturing readiness before operations begin. The company acquired the Jonesborough site earlier in 2025 to expand its special materials business. It said the design relies on engineered environmental controls and solid waste management, with no additional liquid discharge into local waterways. At that time, BWXT estimated about 175 skilled jobs at full operation. The state's figure of 181 new positions is the latest official count.

The Nov. 6 release did not give a construction schedule or a start date for production. BWXT has not disclosed how the $714.5 million will be spread across phases.

Industry implications

The project shows how federal demand is rebuilding parts of the U.S. nuclear materials supply chain that had gone quiet. For decades, the government relied on legacy inventories and a few aging sites for specialty uranium products. Long-term contracts such as the $1.6 billion HPDU award give private operators enough certainty to commit capital to dedicated plants.

The investment also points to the growing role of state incentives in nuclear manufacturing. Tennessee created its Nuclear Energy Fund to attract projects across fuel, components and materials. The state said projects backed by the fund have supported nearly 4,000 jobs and more than $10 billion in capital investment, from $95 million in total funding. Gov. Bill Lee called the BWXT announcement another significant investment in Tennessee.

For BWXT, the Jonesborough plant adds to a portfolio that spans naval nuclear propulsion components, nuclear fuel and special materials. The state noted that the company's two earlier fund-supported projects, both announced in 2025, are in Oak Ridge and Erwin.

Competitive and supply chain implications

Because the facility is expected to be the only active site of its kind for the government, it will occupy a single-source position in a defense-critical chain. That gives BWXT a durable government franchise but also concentrates risk. Delays in licensing, construction or qualification would affect the downstream programs that depend on the material, and there is no second active producer to fall back on.

The build-out will draw on specialized suppliers of furnaces, metal casting and handling systems, radiological controls and long-lead process equipment, which BWXT is responsible for procuring under the contract. Demand for nuclear-qualified equipment and skilled trades is also rising from reactor restarts, uprates, fuel projects and advanced reactor developers. Firms working on several nuclear projects at once may face competition for the same vendors and workers.

The plant also strengthens East Tennessee's position as a center of nuclear work. Oak Ridge hosts federal facilities and a cluster of fuel and materials companies, and Erwin is home to a long-running nuclear fuel operation. Adding Jonesborough creates a regional corridor of suppliers, contractors and trained staff that the state is using to market itself to further nuclear investment.

Regional implications

The 181 jobs are significant for Washington County. Jeff Messaros, general manager of BWXT Ordnance Tennessee, said the grant will help create community benefits that will last for decades. State Rep. Rebecca Alexander, a Jonesborough Republican, said the town has played a vital role in national security and defense for more than 50 years.

Local acceptance has not been unanimous. The Daily Yonder reported in June that the Washington County Commission approved rezoning of the 56-acre property on March 23 by a 10-5 vote, despite a petition opposing the project that drew more than 10,000 signatures. The outlet reported that a residents' group, the East Tennessee Community Coalition, had hired an attorney and was pushing for independent testing of water, air and soil. It also reported that the Tennessee Department of Environment and Conservation classified the planned process as an insignificant emissions unit, and that BWXT has said the project will not affect nearby Little Limestone Creek.

Credence Research analysis

The Jonesborough announcement is less a new decision than a formal commitment of capital behind a contract BWXT won more than a year ago. Its importance lies in the confirmed scale and the state's financial participation, which together indicate the project is moving from design toward construction. The combination of a 10-year federal contract, a state grant and a site the company already owns lowers execution risk compared with a greenfield plant that depends on future orders.

The main uncertainties are timing and community consent. Neither BWXT nor the state has published a schedule, and nuclear materials facilities often face long licensing and commissioning periods. Organized local opposition could add legal or regulatory steps. Because the plant is intended to be the government's sole active HPDU source, schedule performance will matter for federal planners as much as for BWXT, and the project is likely to be watched as a test of how quickly the U.S. can restore lost nuclear manufacturing capabilities.

What comes next

  • BWXT is expected to complete design work and apply for the licenses the facility requires under its NNSA contract.
  • Procurement of long-lead process equipment and site preparation at Jonesborough should follow.
  • BWXT must demonstrate manufacturing readiness before routine production begins.
  • Hiring toward the 181 new positions will scale as the plant moves toward operation.
  • Watch for any legal or permitting challenges from local residents and for a public construction timeline.

Sources

Image: Uranium metal sample (illustrative), by James St. John via Wikimedia Commons, CC BY 2.0. Cropped and edited by Credence Research.

About the Author

Shivangi Gupta
Shivangi Gupta

Senior News Editor at Credence Research Inc