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Oklo just got handed one of the more unusual supply chain opportunities in the energy sector: 34 metric tons of surplus plutonium left over from the Cold War, potentially repurposed into fuel for advanced nuclear reactors.
The US Department of Energy selected Oklo Inc. (NYSE: OKLO) on May 26 for advanced negotiations under its Surplus Plutonium Utilization Program. Shares jumped over 7% on the news, with pre-market trading pushing prices as high as 11-12% above the prior close. The selection puts Oklo alongside four other companies vying to turn a decades-old national security liability into an energy asset.
From ‘dilute and dispose’ to ‘fuel and deploy’
The Surplus Plutonium Utilization Program represents a fundamental pivot. Instead of treating 34 metric tons of plutonium as expensive radioactive waste under a “dilute and dispose” strategy, the DOE now wants to channel it into advanced reactor fuel.
For Oklo specifically, the program could address one of the biggest bottlenecks in advanced nuclear deployment: fuel supply. The company’s Aurora powerhouse reactors are designed to run on recycled nuclear fuel, and access to surplus plutonium feedstock could meaningfully de-risk that supply chain.
Oklo partnered with newcleo, a European nuclear developer, for this bid. The arrangement pairs Oklo’s reactor technology and fuel utilization approach with newcleo’s capital resources and fuel fabrication expertise.
Building on DOE momentum
This isn’t Oklo’s first dance with the Department of Energy. In October 2025, Oklo was selected for DOE fuel line pilot projects. Then in January 2026, the company secured a radioisotope pilot facility agreement. The plutonium utilization selection adds a third DOE track, creating what amounts to a portfolio of government-backed development pathways.
What this means for investors
Investors should understand what “selected for negotiations” actually means. This is not a signed contract. It’s not revenue. It’s the DOE saying “we’d like to talk seriously about working together.” The gap between negotiation selection and commercial fuel production involves regulatory approvals, technical milestones, and years of development.
The partnership with newcleo introduces a potentially important capital dynamic. If newcleo brings project financing to the table alongside its fuel expertise, Oklo could fund development without relying as heavily on dilutive equity raises.
Oklo was one of five companies selected for these negotiations, meaning the DOE is hedging its bets across multiple reactor designs and fuel approaches. Winning the negotiation phase doesn’t guarantee exclusivity.
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