Oklo Inc. (OKLO) just cleared an important regulatory checkpoint on its path toward commercial nuclear power production. The company announced Tuesday that the U.S. Department of Energy approved a preliminary safety review for its fuel fabrication facility in Idaho, which brings the advanced nuclear developer one step closer to actually building the thing.
The DOE's Idaho Operations Office signed off on what's called a Preliminary Documented Safety Analysis. That's the second of three required safety documents in this particular regulatory dance, and it's a pretty big deal because it means Oklo can now start physically assembling the Aurora Fuel Fabrication Facility at Idaho National Laboratory.
Why This Facility Matters
The site will produce fuel for Oklo's first commercial-scale powerhouse, which is exactly what it sounds like. But there's more to the story here. This facility represents the first approval under DOE's Fuel Line Pilot Program, a new initiative designed to cut down the typically glacial timelines for advanced nuclear infrastructure.
And it seems to be working. Oklo reached this preliminary safety agreement in less than two weeks, which in the nuclear regulatory world is basically lightning speed. Federal officials built this pathway specifically to speed up repeatable manufacturing approvals, and early signs suggest it might actually deliver on that promise.
The Recycling Angle
Here's where things get interesting. The facility will recycle material from the legacy Experimental Breeder Reactor-II, known as EBR-II to people who don't enjoy saying long names repeatedly. Oklo plans to repurpose that material for its Aurora-INL powerhouse, which participates in DOE's Reactor Pilot Program. So it's not just building new infrastructure but finding productive uses for decades-old nuclear material.
Jacob DeWitte, Oklo's co-founder and CEO, framed the approval in commercial terms. "By advancing modern fuel fabrication and recycling, we're addressing fuel-supply constraints, improving the economics of our powerhouses, and opening new long-term revenue streams for the business," DeWitte said. He added the company is moving quickly toward full facility deployment.
What Comes Next
The preliminary review is progress, but it's not the finish line. Oklo still needs to submit a final Documented Safety Analysis that will incorporate final engineering and construction details. After that comes a startup readiness review before operations can actually begin. Think of it as three gates, and they've just passed through the second one.
The project fits into broader efforts around domestic fuel security and advanced reactor deployment, two priorities that have gotten increasing attention as energy demands grow and supply chain vulnerabilities become more apparent.
Background on the Deal
Oklo gained access to EBR-II fuel through a competitive DOE process back in 2019. That same year, the company received site-use authorization at Idaho National Laboratory, which serves as the nation's primary nuclear research center. Battelle Energy Alliance manages the lab for DOE's Office of Nuclear Energy.
OKLO Price Action: Oklo shares were down 0.89% at $81.59 during premarket trading on Tuesday.