US Opens Weapons-Grade Plutonium Stockpile to Energy Firms in Bid to Counter Russian Uranium Dominance

Breaking Russia’s Uranium Stranglehold

The United States is taking unprecedented steps to weaken Russia’s dominance in nuclear fuel supplies by offering energy companies access to weapons-grade plutonium from Cold War-era stockpiles, according to reports from the Financial Times. The Department of Energy has published an application process that would allow nuclear energy groups to request up to 19 megatonnes of the government’s plutonium reserves.

Breaking Russia’s Uranium Stranglehold
Companies Lining Up for Access
Fuel Bottlenecks and Russian Dominance
Executive Actions and Industry Response
Safety and Regulatory Concerns
Previous Failures and Legal Uncertainties

Sources indicate that being selected to receive the plutonium could help companies secure faster regulatory approval from the Nuclear Regulatory Commission, which grants licenses required to operate nuclear facilities. This initiative represents the latest effort by the Trump administration to revitalize the American nuclear industry as electricity demand grows for the first time in decades.

Companies Lining Up for Access

At least two prominent nuclear energy companies are expected to apply for access to the government’s plutonium stockpile, according to the report. Oklo, which counts OpenAI’s Sam Altman among its backers, and France’s Newcleo have both expressed interest in the program. The companies plan to convert the radioactive material into fuel for advanced nuclear reactors.

Analysts suggest this move addresses a critical bottleneck in the nuclear industry‘s growth. While utility-scale nuclear plants in Michigan and Pennsylvania are scheduled to restart operations within the next two years, and billions have been invested in developing small modular reactors (SMRs), fuel availability remains a significant constraint.

Fuel Bottlenecks and Russian Dominance

The nuclear industry faces particular challenges with high-assay low-enriched uranium (HALEU) fuel, which is essential for many advanced reactor designs, including SMRs that can provide up to 300 megawatts of power. Russia currently controls the production of this specialized fuel, creating strategic vulnerabilities for Western nuclear programs.

In 2024, the Biden administration banned US imports of uranium products from Russia, exacerbating supply concerns. The United States reportedly produces less than one ton of uranium annually, making alternative fuel sources increasingly critical for energy security and independence.

Executive Actions and Industry Response

President Trump issued four executive orders in May aimed specifically at boosting the nuclear industry, two of which directed the Energy Department to identify and distribute surplus fuel to reactor developers. The current plutonium initiative appears to be an implementation of these directives.

Stefano Buono, founder and CEO of Newcleo, expressed enthusiasm for the program, stating they would be “very happy” to use the plutonium. He reportedly claimed that “with the 92,000 tons of spent fuel that the US has, they could have 100 years of energy independence.”

The French company recently agreed to invest up to $2 billion in the United States as part of a joint agreement with Oklo, with funds directed toward developing advanced fuel fabrication and manufacturing infrastructure.

Safety and Regulatory Concerns

Despite the potential benefits, experts have raised significant concerns about the commercial use of plutonium. Edwin Lyman, a physicist at the Union of Concerned Scientists, warned that “unless you get assurances that they’re going to protect it as though it is a nuclear weapon, then it’s going to increase vulnerability to theft.”

Lyman further expressed skepticism about regulatory oversight, stating, “If there were adults in the room and I could trust the federal government to impose the right standards, it wouldn’t be such a great concern, but it just doesn’t seem feasible.”

Companies applying to access the plutonium stockpile must provide detailed plans for recycling and manufacturing fuel from the radioactive material, along with comprehensive safety procedures, according to the application requirements.

Previous Failures and Legal Uncertainties

This isn’t the first attempt to repurpose plutonium for civilian energy purposes. A previous initiative was cancelled in 2018 due to spiraling costs associated with converting the material into usable fuel. Additionally, sources indicate that President Trump’s legal authority to distribute the plutonium remains unclear, as Congress maintains control over nuclear waste management.

The Energy Department did not immediately respond to requests for comment regarding these legal and practical concerns. Meanwhile, industry analysts suggest that growing electricity demand, particularly from data centers powering artificial intelligence systems, is creating unprecedented pressure to expand nuclear capacity. BloombergNEF forecasts that AI-related power demand could more than double by 2035.

As the nuclear industry navigates these complex technical, regulatory, and geopolitical challenges, the success of this plutonium initiative could significantly influence America’s energy independence and its position in the global nuclear technology race.