A new nuclear strategy emerges
In a significant shift for American energy policy, the United States is reportedly opening portions of its Cold War-era plutonium reserves to private companies developing next-generation nuclear technology. According to sources familiar with the initiative, the Department of Energy has invited applications for up to 19 metric tons of weapons-grade plutonium previously designated for nuclear warheads.
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The move represents a strategic effort to reduce dependence on Russian uranium while accelerating development of advanced reactor designs. Industry analysts suggest this could provide crucial momentum for companies building fast reactors and small modular reactors (SMRs) capable of recycling spent fuel more efficiently than conventional nuclear plants.
Addressing the Russian uranium dilemma
Most advanced reactor designs under development in the United States rely on high-assay low-enriched uranium (HALEU), a specialized fuel where Russia currently dominates commercial-scale production. Despite the U.S. banning imports of Russian uranium products earlier this year, domestic output remains minimal—reportedly less than one metric ton annually according to Department of Energy data.
This reliance has created what industry insiders describe as a critical bottleneck for nuclear startups. The administration’s initiative appears designed specifically to break this dependency while supporting development of smaller, more flexible reactor designs that proponents argue offer safer alternatives to traditional nuclear facilities.
Building on this strategy, President Trump signed multiple executive orders in May aimed at expanding nuclear capacity and securing reactor fuel supplies. Two of those orders specifically directed the Department of Energy to identify surplus nuclear materials and repurpose them for civilian energy applications.
Early movers in the plutonium program
California-based startup Oklo, which counts OpenAI CEO Sam Altman among its backers, and French nuclear firm Newcleo have emerged as early applicants seeking access to the plutonium surplus. Sources indicate that selected companies must submit comprehensive plans detailing how they’ll recycle, process, and manufacture fuel derived from the plutonium, along with rigorous safety and security protocols.
Successful applicants may receive expedited consideration for licenses from the Nuclear Regulatory Commission, a potentially significant advantage in the heavily regulated nuclear sector. The Department of Energy reportedly aims to select the first group of recipients by December’s end, with additional awards possible thereafter.
Meanwhile, Newcleo announced plans last week to invest up to $2 billion in U.S. advanced fuel fabrication infrastructure through a joint project with Oklo. Company founder Stefano Buono expressed confidence that fast-reactor technologies could leverage America’s substantial spent fuel reserves to achieve long-term energy independence.
Security concerns and historical precedent
Not everyone is convinced this approach represents sound policy. Critics warn that repurposing plutonium for commercial purposes carries serious proliferation and security risks that cannot be overlooked.
“Unless you get assurances that they’re going to protect it as though it is a nuclear weapon, then it’s going to increase vulnerability to theft,” physicist Edwin Lyman of the Union of Concerned Scientists told the Financial Times. His concerns echo longstanding debates within the nonproliferation community about the wisdom of civilian plutonium use.
There’s also the matter of historical precedent. The federal government abandoned a similar initiative in 2018 after costs associated with converting weapons-grade material into usable fuel escalated beyond projections. That earlier collapse raises questions about whether current economic models adequately account for the complex processing requirements.
Adding another layer of uncertainty, it remains unclear whether the administration possesses legal authority to distribute plutonium from the national stockpile without congressional approval, since legislators traditionally oversee U.S. nuclear waste policy. The Department of Energy has not publicly commented on these jurisdictional questions.
The broader energy context
This plutonium initiative adds a new dimension to the administration’s broader campaign to strengthen American energy independence and revive the domestic nuclear sector. The timing appears significant—electricity demand is rising for the first time in decades, creating renewed interest in reliable baseload power sources that don’t contribute to carbon emissions.
For nuclear startups, access to these materials could mean the difference between theoretical designs and commercially viable reactors. But the path forward remains fraught with technical, regulatory, and security challenges that previous initiatives have failed to overcome.
As the December selection deadline approaches, industry watchers will be monitoring whether this ambitious plan represents a genuine breakthrough for next-generation nuclear technology or merely the latest chapter in America’s complicated relationship with its nuclear legacy.
