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This means that the nuclear material is of a high enough concentration to fissile (allow for a fission chain reaction). This is because Uranium comes naturally as 99.3% U238, which cannot sustain fission, and .7% U235, which is what they want for the fuel. So they have to find away to pull away the U238 and leave the U235. As they concentrate the U235, it becomes concentrated enough so that it can sustain fission (too much U238 bogs down the reaction and will eventually end the fission). When it reaches this point of concentration, it is concidered reactor grade. Different elements have different needed concentrations to reach this level.

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Q: What is meant by reactor grade materials?
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