ASP Isotopes Inc (NASDAQ:ASPI) shares are trading higher. The company on Thursday announced a deal to collaborate on an advanced nuclear fuel production facility.

What Happened: ASP Isotopes entered into a Memorandum of Understanding (MOU) with The South African Nuclear Energy Corporation (Necsa) to collaborate on the research, development and commercial production of advanced nuclear fuels.

The MOU contemplates the formation of a new entity in South Africa with a board consisting of at least two representatives from ASP Isotopes and Necsa. The company said discussions between the parties in recent years have centered on advancing new nuclear fuel for small modular reactors at the start, and eventually working toward a nuclear fuel facility for the production of High Assay Low-Enriched Uranium (HALEU).

"Nuclear fuel has one of the most severely compromised supply chains of any material in the World. The World is in urgent need of additional suppliers. This partnership with Necsa will enable us to accelerate the construction of an advanced nuclear fuel facility," said Paul Mann, chairman and CEO of ASP Isotopes.

ASP Isotopes shares are up more than 100% over the past month as several nuclear names have benefitted from an increased focus from hyperscalers aiming to keep up with rising energy demand related to AI data centers.

ASP Isotopes shares surged at the end of October after the company signed a deal with Bill Gates-backed TerraPower related to the construction of a uranium enrichment facility capable of producing HALEU.

ASP on Thursday said it has received interest from potential customers who collectively require over $37 billion of HALEU between now and 2037.

ASPI Price Action: ASP Isotopes shares were up 5.32% at $7.88 at the time of publication Thursday, according to Benzinga Pro.

Photo: Shutterstock.