Nuclear Renaissance Takes Flight: Oklo and Centrus Lead the Charge in Advanced Energy

The U.S. Department of Defense's (DoD) landmark selection of Oklo Inc. to deploy its Aurora microreactor at Eielson Air Force Base in Alaska marks a pivotal moment in the advanced nuclear energy sector. This first-of-its-kind commercial microreactor contract, paired with Centrus Energy's (LEU) monopoly as the sole U.S. supplier of High-Assay Low-Enriched Uranium (HALEU), positions both companies at the forefront of a transformative energy shift. Their collaboration not only addresses critical national security and climate imperatives but also creates a compelling investment opportunity in a sector primed for growth.

The DoD Contract: A Catalyst for Oklo's Leadership

Oklo's selection by the DoD in June 2025 represents a validation of its Aurora microreactor's technical and strategic merits. The 5-megawatt reactor—expandable to higher capacities—is designed to operate for up to 10 years without refueling, a capability vital for remote Arctic bases where temperatures plunge to -50°F. The project aligns with the DoD's push for energy resilience, particularly in regions critical to Indo-Pacific and Arctic operations.

The 30-year power purchase agreement (PPA) guarantees Oklo a steady revenue stream while establishing a regulatory blueprint for future microreactors. With the Nuclear Regulatory Commission (NRC) licensing expected to conclude by 2027, Oklo's 14 GW order pipeline—including agreements with data centers and defense installations—could accelerate rapidly. This milestone has already spurred investor confidence: Oklo's shares surged 101% over the quarter following the announcement.

Centrus: The HALEU Monopoly and Strategic Synergy

Centrus Energy's role as the sole NRC-licensed HALEU producer is central to Oklo's success. HALEU, enriched to 5–20% U-235, is indispensable for advanced reactors like Aurora, which require high-assay fuel to achieve optimal efficiency. Centrus' American Centrifuge Plant in Ohio, operational since late 2023, is the only U.S. facility with this capability, granting it a near-monopoly in a market dominated globally by Russia's Tenex.

The partnership with Oklo, formalized in 2023, creates a symbiotic relationship. Centrus supplies HALEU for Oklo's reactors while sourcing electricity from Oklo's future Ohio plants to power its own operations. This integration reduces costs and ensures supply chain reliability. By 2027, Centrus aims to boost HALEU production to 6,000 kg annually—a critical step to meet surging demand from advanced reactor developers like Oklo and TerraPower.

Market Tailwinds: Resilience, Decarbonization, and Geopolitics

The Oklo-Centrus duo is positioned to capitalize on three converging trends:
1. Military and Industrial Resilience: The DoD's push for microreactors reflects a broader shift toward energy-independent infrastructure. Oklo's technology addresses this need while reducing reliance on vulnerable grid systems.
2. HALEU Market Growth: With 90% of DOE's Advanced Reactor Demonstration Program designs requiring HALEU, Centrus stands to benefit from a projected $2.3 billion global HALEU market by 2030.
3. Global Energy Independence: Partnerships like Centrus' deal with Korea Hydro & Nuclear Power (KHNP) and Oklo's international pipeline signal scalability beyond U.S. borders.

Risks and Considerations

Despite the optimism, challenges remain. Regulatory delays at the NRC, supply chain bottlenecks for critical materials, and geopolitical tensions could slow progress. Oklo's scalability also hinges on proving operational reliability in extreme conditions. For Centrus, expanding capacity requires sustained funding—a risk if bipartisan support wanes.

Investment Thesis: A Dual-Play Opportunity

Investors seeking exposure to the advanced nuclear renaissance should consider both Oklo and Centrus as complementary holdings. Oklo's DoD contract and 30-year PPAs provide near-term revenue visibility, while its 14 GW order pipeline hints at long-term growth. Centrus, as the HALEU gatekeeper, benefits from structural scarcity and strategic partnerships.

The duo's collaboration reduces execution risk and amplifies their addressable market. With the NRC licensing timeline tightening and HALEU demand accelerating, now is a critical juncture to capitalize on these positions.

Final Take

Oklo and Centrus are not just beneficiaries of a single contract—they are architects of a new energy paradigm. Their success in Alaska could catalyze a wave of microreactor deployments across defense, industrial, and civilian sectors. For investors, this is a rare chance to back companies at the intersection of national security, climate action, and technological innovation. With the right risk tolerance and a long-term horizon, the time to act is now.