Oklo (OKLO 0.77%) stock has soared over 650%, or precisely 664% as of this writing, in 2025.
If the nuclear energy stock's extraordinary run makes you edgy, wait until you hear this: Oklo has just signed a $2 billion partnership with Europe-based newcleo to build advanced nuclear fuel fabrication and manufacturing infrastructure in the U.S.
This isn't just any other deal.
Image source: Getty Images.
Dissecting Oklo's latest $2 billion partnership
Oklo's latest partnership is an interesting one for several reasons.
It's a transatlantic partnership, meaning that Oklo has found an international partner in newcleo. That also means it has the government's support. To top that, Sweden's Blykalla could also coinvest in the project and avail fuel services from the partnership. The three companies already have existing collaborations.
Above all, Oklo and newcleo aim to repurpose surplus plutonium into fuel for use in nuclear reactors until uranium enrichment and fuel recycling scales up.
Let me break that down in plain English for you.
Nuclear energy is back in the spotlight, thanks to surging demand for steady power from artificial intelligence (AI) data centers and President Donald Trump's ambitious goals to quadruple the nuclear energy capacity in the U.S. by 2050.
That is why nuclear stocks like Oklo have exploded in recent months. Oklo is developing fast-fission, modular nuclear power plants called Aurora powerhouses that can deliver stable and clean energy at scale. Although nuclear reactors run on uranium fuel, mined uranium deposits have to be enriched for use as nuclear fuel.
Oklo's powerhouses can run on enriched uranium as well as downblended uranium and plutonium-based fuels without enrichment. Plutonium-based fuel can provide vital initial fuel loads, making it easier to deploy multiple gigawatts of reactors until a secure fuel chain is established.
That also explains why Oklo has partnered with newcleo. While Oklo is also into fuel recycling and is building a large recycling facility in Tennessee, newcleo is developing advanced modular reactors that will run on reprocessed nuclear waste.
Secretary of the Interior and chairman of the National Energy Dominance Council Doug Burgum called Oklo's partnership with newcleo "yet another win" for Trump's "American Energy Dominance Agenda."
Time to load up on Oklo stock?
Though several companies are building modular nuclear reactors, Oklo has an edge because it has fuel supply arrangements with the U.S. Department of Energy and is also part of its reactor pilot program. Oklo has also signed several deals lately, including with AI data center providers.
However, the meteoric rise in Oklo shares now means the start-up is already commanding a market cap of over $24 billion, though it is still years away from generating its first revenue.
Investors seem to be taking note of this, which may explain why the nuclear energy stock rose just about 6% at its highest point in trading on Friday on the back of the $2 billion partnership, but lost most of those gains by the market's close. This could just be a precursor -- Oklo stock could remain on investors' radar if the nuclear powerhouse continues to secure deals. But, it could be a choppy ride ahead.
