How OKLO and Centrus Aim to Fix the Nuclear Fuel Bottleneck

Oklo Inc. OKLO and Centrus Energy Corp. LEU plan to pursue a joint venture focused on deconversion services for high-assay low-enriched uranium (HALEU), a critical fuel for advanced nuclear reactors. Deconversion converts enriched uranium into chemical forms such as oxide or metal that can be fabricated into reactor fuel. The collaboration is designed to strengthen the domestic nuclear fuel supply chain by pairing OKLO’s advanced reactor development with Centrus’ expertise in uranium enrichment and nuclear fuel services. By focusing on this key middle step in the fuel cycle, the companies aim to strengthen fuel availability and support the wider deployment of next-generation nuclear reactors in the United States.

OKLO is developing fast fission power plants designed to deliver scalable, carbon-free energy. For such reactors to operate reliably, developers must secure dependable access to nuclear fuel at multiple stages of the production cycle. Company leadership has emphasized that building advanced reactors alone is not sufficient. Long-term success requires a robust infrastructure capable of supporting enrichment, deconversion and fuel fabrication. This partnership reflects that strategy by looking for ways to expand U.S. fuel-cycle capacity and build a more connected system for supplying fuel to advanced nuclear reactors. 

The companies plan to explore locating the facility at Centrus’ site in Piketon, OH, where enrichment operations are already underway. The proposed project would be positioned next to these operations and adjacent to OKLO’s planned 1.2-gigawatt power campus. Notably, the campus has gained momentum after a major agreement with Meta Platforms META to support future data center power needs. Under the arrangement, META is helping fund early development work, and META’s long-term electricity demand is expected to anchor the project. The partnership with META also provides clearer demand visibility as OKLO advances construction plans.

Co-locating enrichment and deconversion could reduce transportation needs and simplify the movement of HALEU between processing stages. The concept also has broader implications for the nuclear industry. A centralized deconversion hub could allow multiple advanced reactor developers to access specialized fuel services without building their own facilities, helping expand domestic nuclear fuel capacity and supporting the wider deployment of advanced reactors in the United States.

The Zacks Rundown on OKLO

Shares of Oklo have surged more than 160% over the past year, breezing past the industry's growth.

OKLO currently has an average brokerage recommendation (ABR) of 2.00 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. 

See how the Zacks Consensus Estimate for OKLO’s earnings has been revised over the past 90 days.

The company currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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