Oklo Inc. (OKLO) shares plummeted 5.11% during intraday trading on Wednesday, despite the company announcing a strategic collaboration with Hexium and TerraPower for the domestic production of high-assay low-enriched uranium (HALEU). The unexpected negative market reaction suggests investors may have concerns about the implications of this new venture.

The collaboration, which also involves Lawrence Livermore National Laboratory, aims to explore the potential of atomic vapor laser isotope separation for commercial-scale enrichment of reactor-grade uranium. Hexium will contribute its laser enrichment technology and expertise, while Oklo will provide a reactor pipeline, and TerraPower will offer its services in nuclear innovation and industrial-scale deployment. The U.S. Department of Energy estimates a significant demand for HALEU, projecting up to 40 metric tons annually by the early 2030s.

Despite the seemingly positive nature of this announcement, the sharp decline in Oklo's stock price suggests that investors may have reservations about the project. Possible concerns could include the financial implications of the collaboration, potential risks associated with the new technology, or uncertainties surrounding the regulatory environment for nuclear fuel production. Alternatively, the stock's performance might be attributed to a "sell the news" phenomenon, where traders take profits following the announcement of anticipated positive developments.