Oklo Inc. (OKLO) just turned a government handshake into something more concrete. The nuclear energy company finalized an Other Transaction Agreement with the Department of Energy on Wednesday, clearing the path to actually build and operate a pilot reactor under the agency's Reactor Pilot Program.

This isn't about generating electricity for the grid. The reactor is designed to produce radioisotopes, the specialized materials used in cancer diagnostics, disease treatment, scientific research, and national security work. It's the kind of thing that sounds niche until you realize how much of the healthcare system depends on it.

Why Washington Cares About Medical Isotopes

Here's the problem: much of America's radioisotope supply comes from overseas or from reactors that have been running since the Cold War era. That makes the supply chain fragile, which gets uncomfortable when you're talking about materials hospitals need for cancer care. The DOE partnership with Oklo is part of a broader federal push to bring that production back onshore and modernize how it's done.

Oklo's subsidiary, Atomic Alchemy Inc., will handle the pilot facility development. To focus resources on this DOE-backed project, the company withdrew a separate construction permit application it had filed with the Nuclear Regulatory Commission for a commercial facility called Meitner-1 in Idaho.

The Bigger Picture

If the pilot works as planned, it could become a model for future facilities aimed at stabilizing domestic radioisotope production. Oklo sees this as more than a healthcare play—it's positioning the reactor program as a catalyst for U.S. leadership in clean energy, advanced manufacturing, and healthcare infrastructure.

The company isn't alone in landing federal support. Other advanced nuclear developers have recently secured DOE backing for next-generation reactor designs, signaling that Washington is serious about modernizing nuclear technology while shoring up energy security.

OKLO Price Action: Oklo shares were up 3.31% at $98.76 at the time of publication on Wednesday, according to market data.