Oklo Inc. (NYSE: OKLO) shares are soaring 5.03% in Friday's pre-market trading following the announcement of a strategic partnership with European reactor developer Newcleo. The collaboration aims to develop advanced fuel fabrication and manufacturing infrastructure in the United States, with Newcleo planning to invest up to $2 billion through an affiliated investment vehicle.

The partnership, which also includes Sweden's advanced nuclear technology developer Blykalla, is set to enhance the U.S. nuclear fuel ecosystem and bolster energy security. Blykalla is considering co-investing in the same projects and procuring fuel-related services, further strengthening the initiative. This move comes as nuclear power in the U.S. gains traction after decades of stagnation, driven by surging electricity demand from data centers and the electrification of transportation and manufacturing industries.

Oklo's CEO, Jacob DeWitte, emphasized the significance of the partnership, stating that "Fissioning surplus plutonium is the best way to eliminate a legacy liability while creating an abundant near-term fuel source." The collaboration is expected to accelerate the deployment of multiple gigawatts of advanced reactors and serve as a bridge fuel until uranium enrichment and recycling scale up. This strategic move aligns with Oklo's recent selection by the U.S. Department of Energy for a pilot project, contributing to the company's impressive year-to-date stock performance of nearly 700% growth.