The Trump administration plans to provide Cold War-era plutonium from dismantled nuclear warheads to private companies for conversion into nuclear fuel, marking the first time weapons-grade material would be available to private sector. The Energy Department has selected five companies, including Oklo and Newcleo, to negotiate for the surplus material.

The Energy Department possesses more than 50 tons of surplus plutonium, previously planning to dilute and bury 34 metric tons at an estimated $20 billion cost. Nuclear startups argue transforming the material into fuel addresses a shortage for new reactors, with Oklo's CEO stating it will "help get more nuclear power online faster."

Critics raise proliferation concerns and question economic viability, noting past efforts like the Savannah River project ballooned to over $50 billion before cancellation. Democrats have expressed unease about security risks, while experts suggest the program faces "significant technical challenges" that previous attempts failed to overcome.