Shares of nuclear fuel supplier Centrus Energy Corp. (LEU.US) surged on Thursday, gaining over 8.8% to trade at $185.41. Advanced nuclear developer Oklo (OKLO.US) also saw its stock rise more than 1.7% to $59.87.

The rally followed an announcement earlier this week that the two companies have signed a letter of intent to establish a long-term partnership. Under the proposed agreement, Centrus would supply high-assay low-enriched uranium (HALEU) to fuel up to five of Oklo's planned Aurora power plants.

The framework outlines that Centrus would supply the HALEU from its American Centrifuge Plant in Ohio to support Oklo's planned development of a 1.2-gigawatt advanced nuclear energy campus. Initial fuel deliveries are targeted to begin in 2029 and continue for multiple years.

The letter of intent also includes the potential for future prepayments from Oklo to Centrus. These would help secure the nuclear fuel supply chain and support Oklo's power plant construction plans, with specific terms to be negotiated in a final agreement.

Oklo's CEO, Jacob DeWitte, stated that the collaboration connects critical elements needed for advanced nuclear deployment, including power production, fuel supply, and end-customer needs. Centrus CEO Amir Vexler added that by linking advanced nuclear projects with domestic U.S. HALEU production, the partnership aims to advance the nation's advanced nuclear energy industry cluster.

HALEU is widely considered a crucial fuel for next-generation advanced reactors, with an enrichment level higher than the low-enriched uranium used in traditional power plants but lower than weapons-grade material. Limited domestic U.S. production capacity has made fuel supply a significant bottleneck for the commercial rollout of advanced nuclear technology.

Analysts note that rapidly growing electricity demand, driven by AI data centers, electrification, and the broader energy transition, is increasing market focus on small modular reactors and other advanced nuclear solutions. This deal not only secures a key fuel source for Oklo's future projects but also bolsters investor confidence in its long-term commercial prospects.