Key Highlights
- The U.S. Department of Energy has chosen Oklo for advanced discussions within its Surplus Plutonium Utilization Program framework.
- Oklo intends to collaborate with European nuclear technology company newcleo to transform Cold War-era plutonium stockpiles into usable reactor fuel.
- OKLO shares are currently trading at $65.88, having climbed approximately 18% during the past seven days.
- The newcleo collaboration features a prospective investment reaching $2 billion, pending final agreements and regulatory clearances.
- Congressional Democrats have expressed proliferation concerns, highlighting that the stockpile theoretically contains material for 2,000 nuclear weapons.
Oklo Inc. has secured a position among companies selected by the U.S. Department of Energy to enter advanced negotiations within the Surplus Plutonium Utilization Program. This initiative aims to transform designated surplus plutonium materials into viable fuel sources for next-generation nuclear reactor systems.
Shares were valued at $65.88 when the announcement was made public, representing an $11.5 billion market capitalization. The equity has appreciated by roughly 18% throughout the preceding week.
Oklo emerged as one among five advanced nuclear technology firms selected for program participation. The company intends to spearhead the fuel transformation initiative in conjunction with newcleo, a European firm specializing in advanced nuclear reactor development.
Newcleo would contribute fuel fabrication expertise and prospective project financing to the collaboration, contingent upon finalized contracts and regulatory permissions. The partnership between both entities was initially disclosed in October 2025, encompassing a potential $2 billion capital infusion from a newcleo-connected investment vehicle.
During February 2026, newcleo initiated preliminary consultation proceedings with the U.S. Nuclear Regulatory Commission regarding an advanced fuel manufacturing facility and a lead-cooled fast reactor configuration.
The plutonium material central to this program originates from the Cold War era. It derives from decommissioned nuclear warheads, with the United States maintaining approximately 20 metric tons at maximum-security installations in South Carolina, Texas, and New Mexico.
President Trump issued an executive directive approximately one year ago terminating a program focused on diluting and permanently disposing of the surplus material. The directive instead instructed government agencies to make it accessible as fuel for advanced nuclear technology applications.
Details of the Plutonium Conversion Initiative
The material possesses a radioactive half-life spanning 24,000 years and necessitates specialized protective equipment during handling procedures. It remains secured at weapons-grade protection facilities.
Oklo CEO Jacob DeWitte stated the program establishes a framework for accelerating reactor deployment timelines. “Material previously designated for permanent disposal can be repurposed into fuel for electricity generation,” he explained.
Newcleo CEO Stefano Buono indicated that repurposing the plutonium as reactor fuel would diminish U.S. nuclear waste liabilities.
The program mandates complete adherence to U.S. security protocols, safeguard measures, and material tracking requirements.
Legislative and Regulatory Opposition
Democratic congressional members have called on the Trump administration to terminate the initiative. They contend it creates a proliferation hazard, emphasizing the inventory holds sufficient plutonium for manufacturing roughly 2,000 atomic weapons.
The Department of Energy has not yet provided responses to inquiries regarding security measures for protecting the material.
Notably, U.S. Energy Secretary Chris Wright held a position on Oklo’s board of directors prior to his appointment to the Trump administration.
Regarding analyst perspectives, BofA Securities launched coverage of Oklo with a buy recommendation and an $80 price objective, highlighting the company’s build-own-operate business framework. Wolfe Research assigned the stock a Peerperform designation with a fair valuation range spanning $51 to $71 per share.
Oklo disclosed Q1 2026 earnings per share of -$0.19, aligning with Wall Street projections. Four financial analysts have recently adjusted their earnings forecasts upward for the forthcoming reporting period.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
