Former SpaceX Engineer Launches Startup to End U.S. Dependency on Russian Uranium Fuel

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Scott Nolan, a former SpaceX engineer, has founded General Matter, a San Francisco-based startup aiming to break Russia’s monopoly on high-assay low-enriched uranium (HALEU) and produce it at scale in the United States. The company plans to meet the growing demand for HALEU, a type of uranium enriched between 5% and 20%, which is essential for next-generation nuclear reactors, such as small modular reactors (SMRs), expected to be pivotal by the 2030s.

Aims to Revolutionize U.S. Nuclear Fuel Production

HALEU is key for advanced reactors, offering more efficient energy production than the standard uranium fuel used in current reactors. Companies like Amazon are exploring the use of such reactors to power data centers, underscoring the fuel’s importance. Nolan’s vision for General Matter includes not only ramping up domestic HALEU production but also significantly reducing its costs.

Nolan aims to halve HALEU enrichment costs in the long term, which are currently elusive but estimated between $25,000 and $35,000 per kilogram. This price is largely driven by Russian production, creating vulnerabilities for U.S. energy security.

U.S. Government Support and Industry Competition

The U.S. Department of Energy (DOE) awarded initial contracts to General Matter and three other companies in October as part of a push to kickstart domestic HALEU production. These contracts are part of a $2.7 billion initiative, pending Congressional approval. However, General Matter faces stiff competition from established companies like Urenco USA, Orano USA, and Centrus Energy, which already have infrastructure and expertise in uranium production.

Challenges and Controversy

While HALEU holds potential for revolutionizing the nuclear energy sector, critics have raised concerns about its enriched levels, fearing potential military uses. Nolan emphasized that his company would rely on regulators to set safe enrichment levels, likely between 10% and 12%.

SpaceX-Inspired Approach to Technology

Nolan’s approach to HALEU production takes inspiration from his time at SpaceX, where technological innovation and cost-cutting were central. At General Matter, he plans to combine nuclear industry experience with the agility of the technology sector to rethink uranium production methods. The startup’s approach could include novel techniques like lasers, in addition to the more traditional high-speed centrifuges used for uranium enrichment.

Italy Concludes Probe into Meta Executives for Alleged €887.6 Million VAT Evasion

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Italian prosecutors have concluded their investigation into alleged tax evasion by Meta (META.O), the parent company of Facebook, involving two executives from its Irish subsidiary, Meta Platforms Ireland Ltd. The probe centers on a claimed €887.6 million ($937.93 million) in VAT evasion. This marks a significant step in the process, although no trial requests have been made yet, as the suspects are still allowed to prove their innocence.

Implications for the Industry

The case could have broader consequences for the tech industry, as it involves how Meta provides access to its platforms like Facebook and Instagram. While the €887.6 million might seem modest compared to Meta’s $32 billion in annual revenue, the issue revolves around the way user data is exchanged for free access to these services, which could set a precedent for how other tech companies are taxed.

Tax Dispute with Italy’s Revenue Agency

The core of the investigation is tied to ongoing negotiations between Meta and Italy’s Revenue Agency. Last year, Italian tax authorities argued that Meta’s user registrations should be considered taxable transactions, as they involve the non-monetary exchange of personal data for access to social media services. The authorities claim that between 2015 and 2021, Meta failed to declare nearly €4 billion in taxable income, leading to VAT evasion of more than €887 million.

Next Steps and Meta’s Response

Meta has 60 days to respond to the Revenue Agency’s observations, after which the company can either settle by paying the proposed amount or initiate a legal challenge. Meta disagrees with the tax authority’s stance, arguing that providing users with access to its platforms should not be subject to VAT. In response to the dispute’s complexity, Italy’s Ministry of Finance has sought a technical opinion from the European Commission’s VAT Committee, though no response has been received yet.

Binance CEO Says Global Headquarters Location Still Undecided

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Binance, the world’s largest cryptocurrency exchange, has yet to decide where to establish its global headquarters, according to CEO Richard Teng. The decision has been long anticipated, but Teng emphasized that the issue remains complicated due to various factors. In an interview during the Abu Dhabi Finance Week conference, Teng explained that tax laws and the ability to attract talent would play a significant role in the choice of location. Binance is in ongoing discussions with multiple jurisdictions, though specific locations were not disclosed.

Governance Improvements

The decision about Binance’s headquarters is seen as part of a broader effort to enhance the company’s transparency following legal issues with its former CEO, Changpeng Zhao (CZ), who pleaded guilty to violating U.S. money laundering laws earlier this year. As part of its governance overhaul, Binance appointed a new board of directors for the first time in its history, which now includes three independent members. Teng noted that Binance had shifted from a founder-led to a board-led company, though he still occasionally communicates with Zhao, who retains his shareholder rights.

Global Presence and Regulatory Outlook

Binance currently holds 20 licenses and registrations globally, including in Abu Dhabi and Dubai. The company has been focusing on improving corporate governance and transparency in response to past challenges. Teng expressed optimism about the future of cryptocurrency regulations, particularly in the U.S., with the incoming administration under President-elect Donald Trump expected to adopt a more lenient regulatory stance. Teng predicted that such a shift could encourage other nations to follow suit, further boosting the cryptocurrency sector.