Nuclear technology firm Oklo said on Friday it has signed an agreement with Europe-based newcleo to develop advanced fuel fabrication and manufacturing infrastructure in the U.S.

Under the agreement, nuclear reactor developer newcleo plans to invest up to $2 billion. Sweden's advanced nuclear technology developer Blykalla is also considering co-investing in the same projects and procuring fuel-related services from them.

Shares of Sam Altman-backed Oklo were up 1.6% in premarket trading.

Nuclear power in the U.S. has been gaining traction after decades of stagnation, fueled by surging electricity demand from energy-hungry data centers and the electrification of transportation and manufacturing industries.

Oklo CEO Jacob DeWitte said fissioning surplus plutonium is the best way to eliminate a legacy liability while creating an abundant near-term fuel source.

"It can accelerate the deployment of multiple gigawatts of advanced reactors and serve as a bridge fuel until uranium enrichment and recycling scale up," DeWitte said.