DOE Picks Oklo for Plutonium Fuel Talks; Stock Rises

The U.S. Department of Energy selected Oklo for advanced negotiations under the Surplus Plutonium Utilization Program to convert Cold War‑era weapons‑grade plutonium into commercial reactor fuel. The designation allows Oklo to negotiate how the surplus material could be converted and qualified for use in its reactor technology.

Oklo confirmed it will lead the effort alongside European reactor developer Newcleo. The companies said the work will evaluate methods to turn long‑term government plutonium storage into feedstock for energy production. In a press release, Oklo described the material as a “bridge fuel” for its planned commercial reactors.

Oklo shares rose about 10% in early trading and climbed back above $70 after the announcement. Market activity included short covering; the company entered late May with roughly 19% of its public float sold short, and traders bought shares when the DOE news arrived premarket.

Oklo and Newcleo outlined a broader partnership that could include up to $2 billion of investment via a Newcleo‑affiliated vehicle to develop advanced fuel fabrication infrastructure in the United States. Company officials said the vehicle would provide capital and technical support to scale fuel production on a U.S. footprint.

Analyst coverage has shifted in recent days. Bank of America reinstated coverage on Oklo with a buy rating last week. The consensus analyst rating for Oklo currently stands at moderate buy, with a mean price target near $130.

Technical indicators cited by market analysts showed the stock moving above key moving averages, with a relative strength index in the mid‑50s. Traders interpreted the pattern as room for further upward movement before typical overbought thresholds.

Oklo is a pre‑revenue advanced nuclear company developing fast‑fission reactors that can recycle used nuclear material. Fuel qualification and domestic fabrication capacity are prerequisites for commercial deployment of advanced reactors, and the DOE selection provides a regulatory pathway specific to plutonium feedstock.

The DOE’s selection comes ahead of agency targets tied to pilot reactor milestones set for July 4. The advanced negotiation phase will address technical, safety and regulatory requirements for converting and using surplus plutonium, along with any federal oversight conditions tied to the materials.