Terrestrial Energy's stock surged 27.76% in pre-market trading following the announcement of an Other Transaction Authority (OTA) agreement with the U.S. Department of Energy (DOE) for Project TETRA, a pilot reactor using its Integral Molten Salt Reactor (IMSR) technology.

The agreement, part of the DOE's Advanced Reactor Pilot Program, enables Terrestrial Energy to expedite the development, licensing, and operation of its IMSR plants. The pilot reactor will use molten salt-fueled, graphite-moderated technology with standard assay, low-enriched uranium fuel, positioning the company for swift commercialization of its clean energy solutions.

CEO Simon Irish highlighted the partnership's role in accelerating the deployment of IMSR plants, which are designed to provide low-cost, clean, and reliable energy for electricity generation and industrial heat applications. The project leverages existing U.S. manufacturing infrastructure and eliminates dependency on high-assay low-enriched uranium (HALEU), enhancing supply security and scalability.