Oklo(OKLO) announced on Friday that it is partnering with Newcleo, a European developer of advanced nuclear reactors, on a joint agreement to accelerate fuel fabrication and infrastructure manufacturing in the United States.
As part of the agreement, newcleo is planning to invest up to $2 billion in the US, pending “customary approvals,” according to a press release. The money will be coming from an investment vehicle fund managed by newcleo.
Oklo noted that Swedish advanced nuclear technology developer Blykalla is also “considering” making a co-investment in the projects and obtaining related services from them.
Oklo develops small modular reactors (SMRs), while newcleo builds advanced modular reactors (AMRs).
The investments are expected to span multiple projects under the oversight of the US government, with the aim of creating a transatlantic fuel ecosystem that enhances energy security.
The initiative will include a co-investment and co-location of fuel fabrication facilities. The companies will also look into repurposing surplus plutonium.
“Fissioning surplus plutonium is the best way to eliminate a legacy liability while creating an abundant near-term fuel source,’ Jacob DeWitte, co-founder and CEO of Oklo, said in a statement.
“It can accelerate the deployment of multiple gigawatts of advanced reactors and serve as a bridge fuel until uranium enrichment and recycling scale up.”
Nuclear stocks continue to surge
Oklo’s stock stayed mostly flat after the announcement on Friday, but it has soared 670.2% on the back of a renaissance in nuclear power under the Trump administration.
The industry is seen as critical to helping power the expected proliferation of AI data centers in the US.
Doug Burgum, secretary of the interior and chairman of the National Energy Dominance Council, said in a statement that “the administration is committed to enhancing energy security, creating more American jobs, and ensuring that the United States remains at the forefront of global energy production and innovation.”
Meanwhile, Stefano Buono, founder and CEO of newcleo, said that the “agreement proves that the US and Europe can lead in this sector” through a “transatlantic cooperation in providing clean, safe and secure energy.”
Although Oklo and other nuclear stocks have been on a tear this year, some analysts have grown skeptical of how frothy the market has gotten, especially when profits will likely be years away.
Chris Gadomski, head of nuclear research at BloombergNEF, recently compared the enthusiasm around SMRs and data centers to the “internet boom and bust of the early 2000s” in an interview with the Financial Times, suggesting that Wall Street is underestimating the enormous costs Oklo and other SMRs are facing to get their facilities up and running.
“There’s a lot of cheerleading happening, but the amount of capital that you need to cross the finish line is huge,” he said.
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