By Katherine Hamilton

Oklo received approval from the Energy Department to move ahead with building an isotope test reactor in Texas, as the company's fiscal-year loss widened.

The approval allows Oklo's subsidiary Atomic Alchemy to advance to the next phase of developing its isotope facility. Atomic Alchemy is targeting criticality--where the reactor is self-sustaining--at its Texas facility by July 2026. The site is located near Lockhart in Caldwell County.

The isotope plant will help the nuclear-energy company gather data it can apply to subsequent licensing submissions and deployments, Chief Executive Jacob DeWitte said.

The facility is intended to lay the groundwork for future commercial plants that produce isotopes in the U.S. The plants are designed to support cancer diagnosis and treatment, advanced manufacturing, scientific and space research, and national security needs.

The Energy Department's approval is part of its Reactor Pilot Program, which is designed to provide a framework for building and operating nuclear plants.

The approval comes as investors are worried Oklo won't clear the regulatory hurdles it needs to make sales.

The company on Tuesday posted a loss of $105.7 million, or 72 cents a share, for the year ended Dec. 31, compared with a loss of $73.6 million, or 74 cents a share, the year before.

Oklo, which is working to develop a small modular nuclear reactor, has not yet recorded revenue.

The company said earlier this week it had secured its first license from the Nuclear Regulatory Commission, clearing the way for its subsidiary Atomic Alchemy to start commercial sales from its laboratory in Idaho.

Oklo is aiming to create a way to produce nuclear energy more affordably to meet rising energy demand from AI developers. But the long regulatory road to getting a reactor approved, up and running has worried investors, sending shares down 27% in the past three months.

Its deficit reached $240.8 million by the end of 2025. Management expects significant ongoing operating expenses will be necessary to implement Oklo's business plan and develop its powerhouses.

OpenAI Chief Executive Sam Altman was an early investor and chair of Oklo, but departed in April. The company's loss has continued to widen as it spends on research and development.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

March 17, 2026 17:04 ET (21:04 GMT)

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