Thorium-based nuclear power generation is fueled primarily by the nuclear fission of the isotope uranium-233 produced from the fertile element thorium. A thorium fuel cycle can offer several potential advantages over a uranium fuel cycle—including the much greater abundance of thorium found on Earth, superior physical and nuclear fuel properties, and reduced nuclear waste production. One advantage of thorium fuel is its low weaponization potential. It is difficult to weaponize the uranium-233 that is bred in the reactor. Plutonium-239 is produced at much lower levels and can be consumed in thorium reactors.

The thorium fuel cycle is a nuclear fuel cycle that uses an isotope of thorium, 232Th, as the fertile material. In the reactor, 232Th is transmuted into the fissile artificial uranium isotope 233U which is the nuclear fuel. Unlike natural uranium, natural thorium contains only trace amounts of fissile material, which are insufficient to initiate a nuclear chain reaction. Additional fissile material or another neutron source is necessary to initiate the fuel cycle. In a thorium-fuelled reactor, 232Th absorbs neutrons to produce 233U. This parallels the process in uranium breeder reactors whereby fertile 238U absorbs neutrons to form fissile 239Pu. Depending on the design of the reactor and fuel cycle, the generated 233U either fissions in situ or is chemically separated from the used nuclear fuel and formed into new nuclear fuel.