Oklo Inc. (Ticker: OKLO) saw its stock price rise significantly by 7% on Tuesday. The increase is attributed to the company's announcement that it is in advanced negotiations with the U.S. Department of Energy regarding a federal program. This initiative focuses on converting surplus plutonium material into fuel for next-generation nuclear reactors.

This development marks a significant step for Oklo, a developer of small modular nuclear reactors. The move further deepens the company's partnership with the U.S. government and supports its expansion within the advanced nuclear energy sector.

Plutonium, a radioactive element left over from the Cold War era, can be used as fuel for nuclear reactors or in the production of nuclear weapons.

Oklo, which became a public company in 2024, specializes in small modular reactors (SMRs). These reactors are considered to offer enhanced safety and efficiency compared to traditional nuclear power plants and represent a key avenue for expanding nuclear power capacity in the United States.

Earlier this year, Oklo secured an agreement with the U.S. Department of Energy, receiving government support to advance the design, construction, and operation of its first reactor.

The current push for nuclear energy development in the U.S., coupled with increased investment from major technology companies to power data centers and artificial intelligence projects, provides a favorable backdrop for this collaboration.