Oklo Stock Surges 18% as DOE Taps Company for Cold War Plutonium Deal

TLDR

• Oklo has been selected by the U.S. Department of Energy for advanced negotiations under the Surplus Plutonium Utilization Program.
• The company plans to partner with European nuclear firm newcleo to convert Cold War-era surplus plutonium into reactor fuel.
• OKLO stock trades at $65.88 and has surged nearly 18% over the past week.
• The partnership with newcleo includes a potential investment of up to $2 billion, subject to agreements and conditions.
• Democratic lawmakers have raised concerns about proliferation risks, noting the material could theoretically make 2,000 atomic bombs.

Oklo Inc. has been selected by the U.S. Department of Energy for advanced negotiations under the Surplus Plutonium Utilization Program. The program is designed to convert designated surplus plutonium into fuel for advanced nuclear reactors.

Oklo Inc., OKLO

The stock was trading at $65.88 at the time of the announcement, with a market cap of $11.5 billion. The stock has gained nearly 18% over the past week.

Oklo was one of five advanced nuclear companies chosen for the program. It plans to lead the fuel conversion effort alongside newcleo, a European advanced nuclear reactor developer.

Newcleo would bring fuel expertise and potential project capital to the partnership, subject to definitive agreements and regulatory approvals. The two companies first announced a partnership in October 2025, which included a potential $2 billion investment from a newcleo-affiliated vehicle.

In February 2026, newcleo began pre-application talks with the U.S. Nuclear Regulatory Commission for an advanced fuel fabrication facility and a lead-cooled fast reactor design.

The plutonium at the center of the program dates back to the Cold War. It comes from dismantled nuclear warheads, with the U.S. holding roughly 20 metric tons at heavily guarded facilities in South Carolina, Texas, and New Mexico.

President Trump signed an executive order around a year ago halting a program to dilute and dispose of the surplus material. Instead, the order directed the government to make it available as fuel for advanced nuclear technologies.

What the Plutonium Program Involves

The material has a half-life of 24,000 years and requires protective gear to handle. It is stored at weapons-grade security facilities.

Newcleo CEO Stefano Buono said using the plutonium as fuel would reduce U.S. nuclear liabilities.

The program requires full compliance with U.S. security, safeguards, and material accountability requirements.

Political and Regulatory Pushback

Democratic lawmakers have urged the Trump administration to cancel the plan. They say it presents a proliferation risk, noting the stockpile contains enough plutonium to build approximately 2,000 atomic bombs.

The Department of Energy did not immediately respond to requests for comment on how the material would be kept safe.

It’s worth noting that U.S. Energy Secretary Chris Wright previously served on Oklo’s board before joining the Trump cabinet.

On the analyst front, BofA Securities initiated coverage on Oklo with a buy rating and an $80 price target, citing the company’s build-own-operate model. Wolfe Research gave the stock a Peerperform rating with a fair value range of $51 to $71 per share.

Oklo reported Q1 2026 earnings per share of -$0.19, in line with Wall Street expectations. Four analysts have recently revised their earnings estimates upward for the upcoming period.

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