Key Takeaways:
Oklo and Standard Nuclear aim to turn nearly 100,000 metric tons of used nuclear fuel into fresh reactor feedstock, a move that could reshape the U.S. advanced nuclear fuel supply chain.
Oklo Inc. and Standard Nuclear signed a memorandum of understanding to explore commercial fuel recycling and advanced fuel manufacturing, targeting the U.S. stockpile of almost 100,000 metric tons of used nuclear fuel as feedstock for next-generation reactors.
"Oklo's fuel strategy is built around turning used nuclear fuel and surplus nuclear materials into usable fuel for reactors and power plants," Jacob DeWitte, co-founder and chief executive officer of Oklo, said.
The agreement covers recycled material offtake from Oklo's planned Oak Ridge, Tennessee facility, focusing on reprocessed uranium and uranium-transuranic streams for TRISO fuel production. Both companies were selected by the U.S. Department of Energy among five firms for advanced negotiations under the Surplus Plutonium Utilization Program, and the MOU also includes collaboration on converting surplus plutonium into advanced reactor fuel.
The partnership addresses a critical gap in the U.S. nuclear supply chain: feedstock for advanced reactors. Oklo holds $2.5 billion in cash and has secured a binding 1.2 GWe power agreement with Meta Platforms, giving it financial runway to commercialize its Aurora fast fission plant by late 2027. Standard Nuclear, the nation's only independent TRISO fuel manufacturer, gains a domestic source of recycled materials, reducing reliance on foreign suppliers for the enriched uranium needed by next-generation reactors.
The MOU aligns with executive orders to accelerate U.S. nuclear deployment and establish domestic supplies of critical nuclear materials. Oklo's planned recycling facility in Oak Ridge would recover selected materials from used fuel for advanced fuel manufacturing and isotope applications spanning healthcare, industrial, space, defense, and research uses. The company is also advancing Pluto, a plutonium-fueled fast test reactor, as part of a broader strategy to demonstrate how surplus plutonium can serve as bridge fuel for advanced reactors.
Standard Nuclear develops TRISO fuel — a durable, high-performance fuel form essential for advanced reactors in both terrestrial and space applications. The company also produces radioisotope power systems for space and defense. Kurt Terrani, chief executive officer of Standard Nuclear, said the partnership "represents a compelling pathway to source feedstock materials for our TRISO fuel manufacturing and radioisotope power systems."
The collaboration comes as Oklo has made significant regulatory progress. The DOE approved Oklo's Preliminary Documented Safety Analysis for the Aurora powerhouse at Idaho National Laboratory on June 11, the third of four steps toward construction authorization. The company also closed its acquisition of ARMEC, a precision manufacturing firm in Oak Ridge, on June 4 to vertically integrate production. Oklo was the first company to receive a site use permit from the DOE for a commercial advanced fission plant and submitted the first custom combined license application for an advanced reactor to the Nuclear Regulatory Commission.
Oklo shares rose 5.7% to $60.74 on the news, though the stock remains 54% below its 52-week high of $193.84. The company trades at a premium reflecting its pre-revenue status — it posted a net loss of $73.6 million in fiscal 2024 — but its $2.5 billion cash position and 14+ GWe customer pipeline, anchored by Meta and Switch, provide a buffer against dilution risk. Canaccord Genuity rates Oklo a Buy with a $125 price target, implying more than 100% upside from current levels. The key risk remains NRC licensing timelines; any delay past 2027 could force the company to raise additional capital.
This article is for informational purposes only and does not constitute investment advice.
