Quantum Leap Energy (QLE), a wholly owned subsidiary of ASP Isotopes and South Africa’s state-owned Nuclear Energy Corporation of South Africa have signed a binding agreement to advance plans for a high-assay low-enriched uranium (HALEU) production facility, positioning the country to pursue a larger role in the global nuclear fuel market. The proposed joint venture will develop facilities at Necsa’s Pelindaba site.

The agreement, announced by ASP Isotopes, establishes a commercial framework to develop, finance, construct and operate a test bench and commercial-scale enrichment facility. HALEU, uranium enriched to contain between 5% and 20% uranium-235, is a critical fuel for several advanced nuclear reactor designs.

South Africa targets nuclear fuel

Necsa CEO Loyiso Tyabashe said South Africa could become a reliable supplier of advanced nuclear fuel as countries seek to diversify supply chains and support next-generation nuclear power. The corporation will contribute its nuclear operating experience, safeguards expertise and regulatory capabilities to the partnership, helping establish the framework for potential commercial production.

The agreement builds on a memorandum of understanding signed in November 2024 and a pre-implementation services contract signed in February 2026. In July 2026, Quantum Leap Energy received approval from South Africa’s Ministry of Electricity and Energy to acquire, possess, use, dispose of and transport source material and nuclear-related equipment and technology for enrichment activities at Pelindaba.

TerraPower provides commercial backing

Preparatory work is already underway at the site, where a test bench has been constructed and refurbishment of the infrastructure housing it is in progress. The companies have also begun engaging with relevant authorities as they advance the project toward testing and commercial development.

Quantum Leap Energy has secured expected production offtake through supply agreements with TerraPower, the advanced nuclear reactor developer founded by Bill Gates. The agreements provide a potential commercial outlet for the project’s planned output, although the production timetable, final investment requirements and other milestones remain important considerations.

“This agreement demonstrates real commercial progress and brings us one step closer to enrichment,” Quantum Leap Energy CEO Ryno Pretorius said, adding that Necsa’s nuclear infrastructure and expertise would support the project.

Ownership gives QLE control

Under the agreed framework, Quantum Leap Energy will own approximately 80% of the joint venture and lead operations and capital arrangements. Necsa will hold the remaining 20%, contributing site access and support for nuclear safeguards, licensing and regulatory compliance.

The parties also intend for Necsa to enter into an engineering, procurement and construction arrangement with Quantum Leap Energy, potentially giving the project direct access to the state-owned corporation’s engineering capabilities. The companies expect the combination of proprietary enrichment technology and established nuclear infrastructure to support development.

Enrichment ambitions face hurdles

ASP Isotopes develops technologies for producing critical materials used in nuclear energy, electronics and nuclear medicine. Its portfolio includes the Aerodynamic Separation Process and Quantum Enrichment technologies. Quantum Leap Energy, a Texas-based, development-stage nuclear fuels company incorporated in 2023, is focused on uranium conversion, enrichment and isotope separation, including lithium isotopes used in advanced energy applications.

However, the company has disclosed that it has not applied its enrichment technologies to uranium-235 enrichment or received regulatory approval to test those technologies on uranium-235, except for activities contemplated under its services contract with Necsa. The distinction underscores the technical and regulatory work still required before the venture can establish commercial HALEU production.

Necsa, established under South Africa’s Nuclear Energy Act in 1999 and wholly owned by the state, operates the Pelindaba nuclear research center, home to the 20-megawatt SAFARI-1 research reactor. For Quantum Leap Energy and ASP Isotopes, the partnership represents a step toward commercializing nuclear fuel technologies in a market seeking alternatives to conventional reactor fuels.