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CHARLOTTE, N.C. - Terrestrial Energy Inc. (NASDAQ:IMSR) has signed a manufacturing and supply contract with Springfields Fuels Limited, a Westinghouse Electric Company subsidiary, for the design and construction of an Integral Molten Salt Reactor (IMSR) fuel pilot plant, according to a press release statement. The company, currently valued at $518.65 million in market capitalization, has seen its stock price reach $13.66, representing a 36.33% year-to-date return.
The agreement builds on a contract signed in August 2023 for planning and initial design of IMSR fuel supply. Construction of the pilot plant is scheduled to begin in 2026 at Westinghouse's Springfields nuclear fuel manufacturing site in Preston, United Kingdom. This development comes as Terrestrial Energy maintains a current ratio of 1.79, indicating reasonable short-term financial stability as it pursues these expansion plans.
The contract includes commercial-scale fuel services such as deconversion, fabrication, packaging, and transportation. Upon completion, the facility will be positioned to scale to commercial fuel production for future IMSR Plants. Investors tracking this development should note that Terrestrial Energy's P/E ratio stands at 82.55, reflecting market expectations for future growth. InvestingPro analysis shows the company has several additional valuation metrics that could help investors assess its long-term potential.
Terrestrial Energy's IMSR plant uses Generation IV molten salt reactor technology and is fueled with Standard Assay Low-Enriched Uranium (SALEU), uranium enriched to under 5% uranium-235. This fuel choice allows the company to leverage existing supply chains and infrastructure, avoiding challenges associated with High-Assay Low-Enriched Uranium fuel (HALEU).
"This expanded partnership with Westinghouse at Springfields represents a strategic milestone in Terrestrial Energy's Western supply chain strategy as we continue to advance commercialization of our Generation IV reactor technology," said Simon Irish, CEO of Terrestrial Energy.
Tarik Choho, Westinghouse President of Nuclear Fuel, stated, "We have been working with Terrestrial Energy now for more than 4 years on this transformative initiative."
The announcement follows Terrestrial Energy's recent selection for the U.S. Department of Energy's Advanced Reactor Pilot Program and Fuel Line Pilot Program, which the company says will accelerate its commercialization plans for IMSR deployment in the early 2030s.
In other recent news, Terrestrial Energy Inc. has completed its business combination with HCM II Acquisition Corp., resulting in the company becoming publicly traded on the Nasdaq Stock Market under the symbols IMSR and IMSRW. The merger, which involved a domestication from the Cayman Islands to Delaware, was finalized after approval from HCM II shareholders, who voted in favor at an extraordinary general meeting. The transaction closed with gross proceeds exceeding $292 million, including a $50 million common stock PIPE investment. Additionally, the U.S. Department of Energy selected Terrestrial Energy's Project TETRA proposal for its Advanced Reactor Pilot Program, marking a significant milestone in the company's commercialization efforts. This program aims to expedite the licensing of small modular nuclear plants using advanced reactor technologies. HCM II shareholders had the option to redeem their shares for cash, with 7,390 shares redeemed at $10.54 each, totaling approximately $77,890. The merger and subsequent listing on Nasdaq signify a pivotal development for Terrestrial Energy as it advances its nuclear technology initiatives.
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