Oklo, a nuclear energy startup company that especially attracted attention with its microreactor technology, has experienced a rocketing stock price this week after a significant event. The U.S. Defense Logistics Agency Energy, on behalf of the U.S. Air Force, issued a Notice of Intent to Award (NOITA) to the company. The transaction will see Oklo provide clean, on-demand nuclear energy to the Eielson Air Force Base in Alaska, and this is a major milestone in the company, as well as the small modular reactor (SMR) industry in general.
A Major Military Energy Deal
When this possible deal was announced, the price of Oklo stock went through the roof. The stock jumped as high as 28 percent in intraday trade, but ended up gaining 10 percent to finish at $67.15. Such a sharp rise in a short period indicates high investor sentiment in the revolutionary energy products offered by Oklo and its potential contribution to the clean energy phenomenon, which is gaining traction, especially in national defense systems.
The suggested project is to implement the Aurora microreactor developed by Okloatn Eielson Air Force Base in Alaska. This facility has been characterized by difficult climate conditions and a remote area, and thus it makes a good candidate site to use the smaller and portable reactor design by Oklo. Should it be finished, the reactor will be capable of providing up to 75 megawatts (MW) of power, electricity, and heat, all with a hugely-reduced reliance on fossil fuels by the base.
The Technology Behind Oklo’s Success
The Oklo Aurora microreactor is intended to overcome these special challenges of delivering power to remote and hard-to-service places. Contrary to the huge infrastructure and long construction schedules needed in the case of traditional nuclear power plants, the Aurora is factory-constructed, modular, and transportable. This enables quicker deployment, reduced initial investment cost, and more options in addressing localized energy demands.
This capability to deliver credible nuclear power to dispersed military facilities such as Eielson is strategically beneficial. Military bases’ energy independence is a tactic that improves national security, guarantees operational preparedness, and satisfies the clean energy objectives of the federal government. It is especially valuable to the Department of Defense to have a secure, resilient source of power that is not reliant upon the supply chain or fuel supplies.
Not a Done Deal Yet
Investors are understandably enthused, but it is worth pointing out that the deal is not done. The NOITA is a sign that the Air Force wants to proceed with Oklo, yet there are still a number of significant steps before any construction would start. Regulatory approval is the greatest challenge.
Oklo has yet to receive a license to construct and operate the reactor in the U.S. Nuclear Regulatory Commission (NRC). Indeed, the NRC already rejected the license in 2022, Oklo’s application, stating technical and safety issues. Oklo has since been trying to resolve these concerns and intends to re-file its application. The company predicts that the approval of the license will take place in 2027, so the construction and production of energy might start only in 2028 or even later.
In spite of this, the leadership and the investors at Oklo are hopeful. The vertical integration of the company that encompasses fuel fabrication abilities provides the company with a benefit of dealing with regulatory approvals and expanding operations after the necessary approvals have been attained.
A Strong Year for Oklo Stock
The stock performance of Oklo has been impressive to say the least. Its stock price has gained over 217 percent year-to-date in 2025 alone. In the last one year, the stock has soared by more than 561 percent. Such remarkable profits have attracted more investors to follow the company keenly as they view Oklo as a budding nuclear energy industry player.
The trading volume also erupted after the Air Force announcement, with more than 26 million shares being traded in one day . This level of activity underscores the market’s growing confidence in Oklo’s business model and its ability to deliver on ambitious promises.
Financial analysts are also bullish on Oklo’s future. Seaport Global assigned the stock a “Buy” rating with a price target of $71, citing the company’s strong technology platform and its strategic positioning in the emerging SMR market.
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The Bigger Picture for Nuclear Energy
Oklo’s progress reflects a broader trend toward the growing acceptance of nuclear power as a critical part of the clean energy transition. As nations seek to reduce carbon emissions while maintaining reliable power grids, small modular reactors like Oklo’s Aurora offer an attractive solution. Their ability to provide stable, carbon-free power without the massive footprint of conventional reactors makes them appealing for both military and civilian applications.
If the Eielson Air Force Base project succeeds, it could serve as a model for future SMR deployments at other U.S. military bases, particularly those located in remote or energy-insecure areas. Beyond defense, similar systems could eventually be used in isolated civilian communities, mining operations, and island nations where energy infrastructure is limited.
