Oklo partners with newcleo to explore Cold War plutonium fuel use

The DOE tapped Oklo and four other companies to turn decades-old surplus plutonium into advanced reactor fuel, with newcleo eyeing up to $2B in US investment.

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Add us on Google by Editorial Team May. 26, 2026

The US Department of Energy selected Oklo Inc. as one of five companies to negotiate under its Surplus Plutonium Utilization Program, a initiative aimed at converting Cold War-era plutonium stockpiles into usable fuel for next-generation reactors. The other four companies selected alongside Oklo are Exodys Energy, SHINE Technologies, Standard Nuclear, and Flibe Energy.

The newcleo connection and a potential $2B bet

Oklo’s selection doesn’t exist in a vacuum. The company established a strategic agreement with newcleo, a European reactor developer, back on October 17, 2025. The partnership is designed to develop US-based advanced fuel fabrication facilities that could serve both companies’ reactor fleets.

Here’s the number that matters: newcleo has signaled it could invest up to $2 billion in US infrastructure as part of the collaboration. That figure remains contingent on final agreements and regulatory approvals.

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Oklo CEO Jacob DeWitte framed the surplus material as “bridge fuel” for reactors, a term that neatly captures the strategy: use what’s already sitting in government storage to get advanced reactors running while longer-term fuel supply chains are still being built.

Why the DOE is changing course

The US has struggled for years with its surplus plutonium problem. The most notable previous attempt was the Mixed Oxide (MOX) Fuel Fabrication Facility at the Savannah River Site in South Carolina, which was supposed to convert weapons-grade plutonium into reactor fuel. That project ballooned in cost and was ultimately cancelled.

The Surplus Plutonium Utilization Program represents a fundamentally different approach. Rather than building one massive government facility, the DOE is engaging multiple private-sector companies with varying technologies and reactor designs, spreading bets across five different teams.

The DOE’s selection adheres to what it describes as stringent US security and material accountability standards.

What this means for investors

Markets responded quickly. Oklo shares surged more than 5% during intraday trading following the announcement, reaching approximately $69.51. That’s a meaningful single-day move for a company that trades on the NYSE under the ticker OKLO.

Oklo is still a pre-revenue nuclear company. It hasn’t built a commercial reactor yet. The newcleo partnership adds a layer of credibility, with a European partner willing to discuss $2 billion in US investment contingent on final agreements.

The risks remain considerable. Converting surplus plutonium into commercial reactor fuel has never been done at scale in the US. The regulatory pathway is complex. And newcleo’s $2 billion investment commitment is explicitly contingent on final agreements, meaning it’s a ceiling, not a guarantee.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.