Oklo may have solved one of its biggest challenges. On Thursday, the nuclear startup said it signed a letter of intent with Centrus Energy for a multi-year supply of domestic high-assay low-enriched uranium, or HALEU, starting in 2029. This fuel will power up to five of Oklo’s Aurora nuclear powerhouses. After the news, Oklo shares rose 2.7% in premarket trading, and Centrus Energy shares climbed 6.8%. Here’s why this deal is important and what it means for the wider nuclear fuel supply issue.
The lack of HALEU has been a major challenge for the whole advanced nuclear industry, not just Oklo. Right now, only Russia and China produce it at scale. The United States has begun building its own enrichment facilities since banning Russian uranium imports, but supply remains tight. Oklo once suggested using surplus plutonium as a temporary solution while waiting for domestic HALEU production to grow. The new agreement with Centrus gives Oklo a more standard and practical way to fuel its planned reactors.
Oklo’s first Aurora powerhouse, which will be built at Idaho National Laboratory, will use recovered fuel from the Experimental Breeder Reactor II. This facility was shut down in 1994 after Congress stopped its funding due to changing policy priorities. The HALEU supply deal with Centrus will cover the five Aurora units planned after this first one.
The deal is a letter of intent, not a binding contract, but it is still an important step. It helps address a key concern that has made investors question whether Oklo can grow its reactor program as quickly as management has promised.
