Last month, Oklo (OKLO) became the only publicly traded company named by the U.S. Department of Energy (DOE) as part of the initial 11 startups selected for President Trump’s Nuclear Reactor Pilot Program.
And on Tuesday, Oklo again became the only publicly traded company named to a new Energy Department pilot program, as it was selected as one of four companies to build advanced nuclear fuel lines for the agency.
The initiative is being launched in support of Trump's mandate to increase the domestic supply chain for nuclear fuel.
In addition to Oklo, the other three companies include Terrestrial Energy Inc., TRISO-X LLC, and Valar Atomics Inc.
Terrestrial Energy and Valar Atomics were also selected for the Reactor Pilot Program, along with Oklo. The program aims to have at least three reactors achieve criticality by July 4, 2026.
Oklo’s role in this latest pilot program will be to build and operate three fuel fabrication facilities to support their Aurora and Pluto reactors – and potentially other fast reactors.
“President Trump has made clear that a strong nuclear sector is a central component of America’s energy security and prosperity,” Deputy Secretary of Energy James P. Danly said in a statement. “Restoring a secure domestic fuel supply will ensure that advanced reactors can move quickly from design to deployment and into operation.”
All four companies will be responsible for covering the costs of the pilot program, including construction and operations. They are able to apply to receive high-assay low-enriched uranium (HALEU) through DOE’s HALEU Availability Program.
The DOE noted that once the pilot projects are completed it “could drive private sector investment and create a fast-track approach to commercial licensing.”
Wall Street sees valuations getting stretched
In addition to the nuclear fuel pilot program, Oklo on Tuesday announced that the U.S. Nuclear Regulatory Commission (NRC) will be reviewing its Principal Design Criteria (PDC) topical report under an accelerated timeline.
The PDC report lays out a regulatory framework establishing “the fundamental safety, reliability, and performance requirements to guide future reactor licensing and design activities and ensure a clear regulatory foundation,” the company noted.
Once the NRC approves it, the report can be referenced for future applications, eliminating the need to conduct duplicate reviews of material that has already been inspected.
The goal is to follow through on Trump’s push to streamline and accelerate the deployment of nuclear reactors in the US.
Despite the tailwinds that Oklo has working for it, Bank of America Securities analysts downgraded its stock to Neutral from Buy on Tuesday. BofA did nonetheless raise its price target to $117 from $92.
The bank based its downgrade on the "unrealistic" valuations given the current stage of its small modular reactor (SMR) adoption. Oklo is not expected to launch its first SMR until at least 2030.
“While we remain positive on the long-term nuclear theme, current valuations leave little room for error and the near-term risk/reward skews negative,” BofA wrote.
Meanwhile, Goldman Sachs initiated coverage on Oklo last week and issued caution on the stock, with analyst Brian Lee saying that the company needed “to secure finalized customer agreements” in order to become something more than “a catalyst-driven stock.”
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