Cameco, Canada’s largest uranium mining company, headquartered in Saskatoon, has signed a CAD 2.6 billion contract with India’s Department of Atomic Energy. The agreement covers the supply of nearly 22 million pounds of uranium between 2027 and 2035, supporting India’s rapidly expanding civil nuclear program.
The deal was announced in New Delhi during the visit of Canadian Prime Minister Mark Carney — the first trip by a Canadian PM to India since 2018. Alongside the uranium contract, the two governments signed a memorandum of understanding on energy cooperation spanning renewable energy, hydrogen, critical minerals and, notably, small modular reactors (SMRs). Indian Prime Minister Narendra Modi stated that the two nations will also work together on the development of next-generation advanced reactors.
The diplomatic backdrop makes this agreement all the more significant. Canada-India relations had soured in 2023, after Ottawa accused New Delhi of involvement in operations targeting Sikh activists on Canadian soil — allegations India firmly denied. The energy deal therefore marks a clear diplomatic reset, accelerated by pressure from U.S. trade tariffs and both countries’ need to diversify their energy supply chains.
For India, the stakes are substantial. The country’s electricity demand is growing faster than that of any other major economy, while its domestic uranium reserves — concentrated in Jharkhand and Andhra Pradesh — feature very low ore grades, ranging from just 0.02% to 0.45%. Canadian deposits, by contrast, are ten to even a hundred times richer in terms of uranium concentration. Securing stable foreign supply is therefore a structural strategic choice, not an emergency measure. The agreement with Cameco guarantees fuel for Indian nuclear plants for nearly a decade, reducing exposure to spot market volatility.
The broader package extends well beyond nuclear energy. Canada and India have also signed agreements on critical minerals cooperation — covering lithium, cobalt and rare earth elements — and confirmed the launch of negotiations toward a Comprehensive Economic Partnership Agreement, with a target of reaching $50 billion in bilateral trade by the time talks conclude, expected by end of 2026. Canada has also initiated the process to join the International Solar Alliance.
If timelines hold, the first deliveries of Canadian uranium will reach India in 2027. From that point on, India’s nuclear fleet will have a reliable supplier for nearly a decade, while the two countries build a shared industrial base around SMRs and advanced technologies in parallel. This is a model of cooperation that other nations are watching closely: long-term bilateral agreements as a concrete alternative to the instability of global energy commodity markets.
