Oklo, TerraPower and Hexium partner on HALEU fuel production

SANTA CLARA, Calif. - Oklo Inc. (NYSE:OKLO), a nuclear technology company whose stock has surged over 545% in the past year according to InvestingPro data, announced Wednesday a strategic collaboration with Hexium and TerraPower to develop domestic production of High-Assay Low-Enriched Uranium (HALEU), a critical fuel for advanced nuclear reactors. The partnership will evaluate Atomic Vapor Laser Isotope Separation (AVLIS) technology in collaboration with Lawrence Livermore National Laboratory.

The initiative addresses a significant bottleneck in U.S. advanced nuclear deployment. The Department of Energy projects a need for up to 40 metric tons of HALEU annually by the early 2030s, while only about 700 kilograms have been produced domestically since 2023. With a market capitalization of $8.95 billion and a strong balance sheet showing more cash than debt, Oklo appears well-positioned to pursue this opportunity, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.

AVLIS technology uses lasers to selectively ionize uranium isotopes, potentially offering more precise and energy-efficient enrichment compared to traditional centrifuge methods. The technology’s compact design eliminates the need for chemical conversion to uranium hexafluoride, which could simplify the enrichment process.

"This is about building U.S. leadership in fuel technology, and laser enrichment has the potential to be a flexible, scalable option for HALEU, and a strategic asset for the U.S. fuel supply chain," said Jacob DeWitte, co-founder and CEO of Oklo.

The collaboration brings together Hexium’s laser enrichment expertise, Oklo’s reactor development experience, and TerraPower’s nuclear innovation capabilities. MPR Associates will provide independent benchmarking against other enrichment technologies.

Charlie Jarrott, co-founder and CEO of Hexium, described the effort as "building the next generation of American nuclear infrastructure" through a solution that’s "compact, scalable, and energy-efficient."

The companies are jointly funding research to deliver a validated conceptual design and assessment of AVLIS-based HALEU production, according to the press release statement. While Oklo reported negative EBITDA of $63 million in the last twelve months, analysts maintain a bullish outlook with a consensus Buy rating. Get comprehensive insights and 13 additional ProTips for Oklo with an InvestingPro subscription.

In other recent news, Oklo Inc. has announced a significant development with the commencement of a $400 million public offering of common stock, granting underwriters a 30-day option to purchase an additional $60 million in shares. The proceeds are intended for general corporate purposes, working capital, and future investments. Meanwhile, Oklo has been selected to provide nuclear power to Eielson Air Force Base in Alaska as part of a microreactor pilot program to enhance energy resilience for critical infrastructure. This project involves designing, building, owning, and operating a power plant under a long-term power purchase agreement. Additionally, the U.S. Nuclear Regulatory Commission (NRC) is reviewing Oklo’s Licensed Operator Topical Report, which proposes a new approach to licensing nuclear plant operators. This model suggests licensing operators for the Aurora powerhouse technology itself, allowing for centralized monitoring and operational flexibility. The NRC’s ongoing review is crucial for the future deployment of Oklo’s powerhouses. These developments come amid a Senate proposal to extend tax credits for nuclear power to 2036, indicating a favorable regulatory environment for the nuclear industry.

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