Key Highlights
- The U.S. Department of Energy has chosen Oklo for advanced discussions under its Surplus Plutonium Utilization Program initiative.
- Oklo intends to collaborate with newcleo, a European nuclear technology company, to transform Cold War-era weapons-grade plutonium into usable reactor fuel.
- Shares of OKLO currently trade at $65.88, representing an approximately 18% gain over the previous seven days.
- The newcleo collaboration involves a possible capital infusion reaching $2 billion, pending final agreements and regulatory clearances.
- Congressional Democrats have expressed alarm over potential weapons proliferation dangers, highlighting that the stockpile theoretically contains material sufficient for 2,000 nuclear weapons.
The U.S. Department of Energy has tapped Oklo Inc. for advanced negotiations as part of its Surplus Plutonium Utilization Program. This initiative aims to repurpose designated surplus weapons-grade plutonium into fuel suitable for next-generation nuclear reactor systems.
At the time of the disclosure, shares were changing hands at $65.88, giving the company a valuation of $11.5 billion. The stock has recorded gains approaching 18% during the past week of trading.
Oklo emerged as one of five cutting-edge nuclear energy firms selected for participation in the program. The company will spearhead the fuel transformation initiative in conjunction with newcleo, a European developer specializing in advanced nuclear reactor technology.
Newcleo is expected to contribute fuel production knowledge and potential project financing to the collaboration, contingent upon finalized contracts and government approvals. The partnership between the two entities was initially revealed in October 2025, featuring a prospective $2 billion capital commitment from a newcleo-associated investment entity.
In February 2026, newcleo initiated preliminary discussions with the U.S. Nuclear Regulatory Commission regarding an advanced fuel manufacturing facility and a lead-cooled fast reactor architecture.
The plutonium material central to this initiative originated during the Cold War era. The stockpile derives from decommissioned nuclear warheads, with approximately 20 metric tons currently secured at high-security government installations across South Carolina, Texas, and New Mexico.
President Trump issued an executive directive approximately one year ago terminating a program designed to dilute and permanently dispose of the excess material. The directive instead instructed federal agencies to make the plutonium accessible as fuel for advanced nuclear reactor technologies.
Understanding the Plutonium Conversion Initiative
The radioactive material possesses a half-life spanning 24,000 years and necessitates specialized protective equipment for safe handling. It remains housed within weapons-grade security complexes.
Oklo CEO Jacob DeWitte stated the program establishes a framework for accelerating reactor deployment timelines. “Material previously earmarked for permanent disposal can now be transformed into fuel for electricity generation,” he explained.
Newcleo CEO Stefano Buono indicated that repurposing the plutonium as reactor fuel would decrease U.S. nuclear waste management obligations.
The program mandates strict adherence to U.S. security protocols, safeguard mechanisms, and material tracking standards.
Legislative Opposition and Regulatory Scrutiny
Democratic members of Congress have called on the Trump administration to abandon the initiative. They contend it poses significant proliferation hazards, emphasizing that the existing stockpile holds sufficient plutonium to manufacture roughly 2,000 atomic weapons.
The Department of Energy has not yet provided responses to inquiries regarding safety measures for protecting the material.
It bears mentioning that current U.S. Energy Secretary Chris Wright held a board position at Oklo prior to his appointment to the Trump administration.
Regarding Wall Street analysis, BofA Securities launched coverage of Oklo with a buy recommendation and an $80 price objective, highlighting the company’s integrated build-own-operate business approach. Wolfe Research assigned the stock a Peerperform designation with a fair value assessment ranging from $51 to $71 per share.
Oklo disclosed Q1 2026 earnings showing a loss per share of $0.19, matching analyst consensus 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
