Key Takeaways
- The U.S. Department of Energy has chosen Oklo for advanced discussions regarding its Surplus Plutonium Utilization Program.
- Oklo will collaborate with newcleo, a European nuclear technology company, to transform Cold War surplus plutonium into usable reactor fuel.
- Shares of OKLO are currently trading at $65.88, representing an almost 18% increase over the previous seven days.
- The collaboration with newcleo features a possible capital injection reaching $2 billion, pending final agreements and regulatory clearance.
- Congressional Democrats have expressed concern over security risks, highlighting that the stockpile theoretically contains material for 2,000 nuclear weapons.
The U.S. Department of Energy has tapped Oklo Inc. to enter advanced negotiations as part of its Surplus Plutonium Utilization Program. This federal initiative aims to repurpose designated surplus plutonium by converting it into fuel suitable for next-generation nuclear reactors.
Shares were changing hands at $65.88 when the news broke, giving the company an $11.5 billion market capitalization. The stock has climbed nearly 18% in the last week alone.
Oklo stands among five advanced nuclear technology companies selected for participation in the program. The firm intends to spearhead the fuel conversion initiative in partnership with newcleo, a European developer of advanced nuclear reactor systems.
Newcleo’s involvement would contribute specialized fuel fabrication knowledge and potential financing for the project, contingent upon finalized contracts and government approvals. The partnership between the two entities was initially unveiled in October 2025, featuring a prospective $2 billion capital commitment from a newcleo-associated investment vehicle.
By February 2026, newcleo had initiated preliminary discussions with the U.S. Nuclear Regulatory Commission concerning an advanced fuel fabrication plant and a lead-cooled fast reactor architecture.
The plutonium targeted by this program originates from the Cold War era. Sourced from decommissioned nuclear weapons, approximately 20 metric tons are currently held by the United States at high-security storage sites located in South Carolina, Texas, and New Mexico.
President Trump issued an executive order roughly one year ago terminating a program intended to dilute and permanently dispose of this surplus material. The directive instead instructed federal agencies to make the plutonium accessible as fuel for cutting-edge nuclear energy systems.
Understanding the Plutonium Initiative
The substance possesses a half-life of 24,000 years and necessitates specialized protective equipment during handling. Storage occurs at facilities maintained under weapons-grade security protocols.
Oklo CEO Jacob DeWitte stated the program establishes a mechanism to accelerate reactor deployment. “Material previously earmarked for disposal can now be transformed into fuel for electricity generation,” he explained.
Newcleo CEO Stefano Buono indicated that utilizing the plutonium as reactor fuel would diminish America’s nuclear waste obligations.
The program mandates strict adherence to all U.S. security protocols, safeguard measures, and material tracking requirements.
Congressional Opposition and Regulatory Scrutiny
Democratic members of Congress have called on the Trump administration to abandon the initiative. Their concerns center on proliferation dangers, emphasizing that the accumulated stockpile theoretically holds sufficient plutonium to manufacture around 2,000 nuclear weapons.
The Department of Energy has not yet provided a response to inquiries regarding security protocols for the material.
It bears mentioning that current U.S. Energy Secretary Chris Wright was previously a board member at Oklo prior to his appointment to the Trump administration.
Regarding Wall Street coverage, BofA Securities launched coverage on Oklo with a buy recommendation and an $80 price objective, highlighting the company’s integrated build-own-operate business approach. Wolfe Research assigned a Peerperform rating with an estimated fair value between $51 and $71 per share.
Oklo disclosed Q1 2026 earnings per share of -$0.19, matching analyst consensus forecasts. Four financial analysts have recently increased their earnings projections for the next reporting period.
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