The Energy Department is moving forward with a controversial plan to allow up to five companies to use surplus plutonium—historically reserved for nuclear warheads—as fuel for civilian power reactors, a shift that has drawn both industry enthusiasm and sharp security concerns.
On Tuesday, a spokesperson for the department’s nuclear energy office confirmed that the selected firms have entered “advanced negotiations regarding the potential allocation of surplus plutonium materials.” The five companies are Oklo, Exodys Energy, SHINE Technologies, Standard Nuclear, and Flibe Energy, Inc.
The plutonium in question was originally produced for the U.S. nuclear arsenal, with large stockpiles built up during the Cold War. In March, the White House issued an executive order directing the department to scrap a previous program that aimed to dilute and dispose of the material, and instead create a framework to make it available to the nuclear energy industry.
In October, the department clarified that the available plutonium includes weapons-grade, fuel-grade, reactor-grade, and mixed forms. According to the DOE, the initiative “is anticipated to help companies unlock the next level of private funding to broaden domestic nuclear fuel supplies, spur innovation on American recycling technologies, and unlock private sector funding to fuel the nation’s nuclear renaissance.”
But critics argue that repurposing weapons-grade plutonium for civilian energy could create new proliferation risks and security vulnerabilities. The debate echoes broader tensions over the U.S. nuclear posture and the role of atomic energy in a decarbonizing economy.
The move comes amid heightened geopolitical friction, including escalating U.S.-Iran tensions that have put peace talks and energy markets at risk. The Energy Department's push to monetize plutonium is seen by some as a bid to strengthen domestic fuel supplies and reduce reliance on foreign sources.
Industry backers argue the program could unlock private investment and accelerate next-generation reactor designs. However, nonproliferation experts warn that handling weapons-usable material in a commercial setting demands extraordinary safeguards.
The department has not disclosed a timeline for final agreements or the volume of plutonium to be allocated. The five companies now in negotiations represent a range of advanced reactor and fuel-cycle startups, each with different technical approaches to using the material.
This initiative marks a significant departure from decades of U.S. policy that treated plutonium primarily as a waste or security liability. The shift aligns with broader administration goals to expand nuclear power as a carbon-free energy source, but it also reignites a long-running debate over the line between military and civilian nuclear applications.
