Oklo (OKLO) stock surged 5% in pre-market trading after the U.S. Department of Energy (DOE) gave final safety approval for the company’s Groves Isotope Test Reactor in Lockhart, Texas. The stock rose to $54.90, recovering from a prior close of $52.33, even though it remains down 27% over the past six months on a $9.1 billion market cap.
The DOE approved the Documented Safety Analysis (DSA) for the Groves facility, the last major safety document required before the reactor can move toward startup. The DSA establishes the final safety basis, addressing potential hazards, safety controls, and operational rules. It follows the earlier approval of a preliminary safety analysis during the design and construction phase.
With both approvals in hand, Groves now enters the DOE’s final pre-startup review, which includes a readiness assessment and formal startup authorization. Only after those steps can fuel be loaded and nuclear testing begin. Oklo targets first criticality—the moment the reactor achieves a self-sustaining chain reaction—in July 2026. The timeline is significant; Oklo was selected last year for a DOE initiative to deploy at least three test reactors at national laboratories by July 4.
Groves is notable as the first advanced reactor on privately owned land to receive DSA approval, with a fully commercial supply chain for fuel, equipment, and systems. However, the facility is an isotope production plant, not an electricity generator. It will produce radioisotopes for cancer care, advanced manufacturing, research, space exploration, and national security, aiming to reduce U.S. reliance on foreign and aging domestic sources.
Oklo’s broader commercial power ambitions center on its Aurora powerhouse design, still under development at Idaho National Laboratory, where the DOE has already approved a Preliminary Documented Safety Analysis. The company is also building a fuel fabrication facility and has signed a letter of intent with Centrus Energy Corp. for high-assay low-enriched uranium (HALEU) deliveries beginning in 2029. Additionally, Oklo recently acquired engineering firm Creative Engineers, Inc. and entered a memorandum of understanding with Standard Nuclear for fuel recycling and manufacturing.
CEO Jacob DeWitte described the DSA approval as a “milestone,” emphasizing the private-sector delivery model. Analysts at Guggenheim initiated coverage with a neutral rating, projecting positive EBITDA by 2030, while InvestingPro data notes the stock appears slightly overvalued relative to its Fair Value estimate.
