The Trump administration is working on a deal to give weapons-grade plutonium to energy companies

Key Points:

• The U.S. Energy Department has selected five private companies, including Oklo Inc, to enter advanced negotiations for accessing weapons-grade plutonium from its Surplus Plutonium Utilization Program to fuel next-generation nuclear reactors.
• This initiative aims to convert Cold War-era surplus plutonium into fuel for small modular reactors (SMRs), potentially accelerating the deployment of advanced nuclear technology and addressing fuel supply bottlenecks.
• While the program could boost domestic nuclear fuel supplies and innovation, it raises concerns about nuclear proliferation risks, as highlighted by Democratic lawmakers warning about the dangers of transferring weapons-usable plutonium to private industry.
• Advanced nuclear reactors require highly enriched uranium, and with disruptions in traditional uranium supply chains, such as Russia’s reduced exports following the Ukraine war, repurposing plutonium stockpiles is seen as a critical pathway to meet growing U.S. electricity demand.
• The Biden administration had previously pursued plutonium disposal via dilution and burial, but both current and past administrations have explored transforming nuclear stockpiles into reactor fuel, with private companies also working to enhance uranium enrichment capabilities domestically.