Here’s something wild happening in Washington right now. The government is opening its driest vault—not for war, mind you, but for electricity. I’m referring, naturally, to Cold War-era weapons-grade plutonium being transferred to corporations. Bats-bloody-crazy, or what? Oh, it’s genius, though, and it is going to occur whether we like it or not.
Energy Department opens weapons-grade plutonium vault doors
There’s been a recent press release from the Department of Energy that’s got everyone’s attention. They want to supply the nuclear power industry with no more than 19 megatons’ worth of weapons-grade plutonium—that’s more power for an entire city! Two companies saw an immediate opportunity here: Oklo (that’s the company backed by OpenAI’s Sam Altman) and another company from France, whose name is Newcleo. We’re talking here about using military-grade resources for power sources—that’s no small project.
“What’s historic about it?” Oh, for years, the kind of thing has been safely under wraps more tightly than Fort Knox. And now they’re just saying, “Oh, do you want some plutonium with your reactor?” The Financial Times learned that literally the entire industry is left in shock by it. Energy Secretary Chris Wright is saying that it’s all in secure storage, but let’s face it, this is virgin territory here.
Federal shutdown hits nuclear security staff pretty hard
This is where things get interesting (and a bit frightening). The National Nuclear Security Administration only recently began furloughing 1,400 employees because of the US partial government shutdown. So they have fewer than 400 employees monitoring all the US nuclear arsenal. That’s like running a hospital with a skeleton staff during an epidemic.
Privately owned nuclear firms battle for plutonium conversion permits
This is the kicker—the secretive fact fueling this entire narrative. Next-generation nuclear reactor businesses are experiencing a titanic fuel crisis nobody’s really discussing. Small modular reactors require so-called high-assay low-enriched uranium (HALEU), and who’s in charge of most of that supply? Russia. Due to Biden’s 2024 Russian uranium import ban, American businesses are essentially wheeling around seeking alternatives.
Oklo is building some significant steam here. Sam Altman’s support isn’t dollars—it’s Silicon Valley credibility where energy technology is concerned. European expertise that is perhaps a goldmine in potential global partnerships comes in the form of Newcleo. Both firms view this access to plutonium as their golden ticket in ending America’s nuclear fuel crisis.
This is part of an overall effort to strengthen the nuclear sector and push back against Russian dominance of the uranium value chain,” he said.
What’s behind the plutonium race?
- Data centers are eating up electricity like never before
- AI operations needing constant power (24/7, no breaks)
- BloombergNEF predicts energy demand could double by 2035
- Nuclear power plants in Michigan and Pennsylvania prepare for restarts
Nuclear security intersects with energy innovation in historic deal
All of which amounts to some strong contradictions in and of themselves. You’ve got 60,000 contract workers doing weapon-related jobs while the monitoring agency is running on life support. Energy Secretary Wright is saying all is right, but where is the right in having 1,400 fewer nuclear watchdogs in an era of plutonium giveaway? The timing’s almost funny if not so grave.
At the same time that the government is opening its plutonium vault to the private sector, it’s cutting the staff that performs nuclear regulation. Small modular reactors are the way of the future for clean energy, generating up to 300 megawatts apiece. But they urgently need specialized fuel that regular uranium can’t provide.
The state of uranium production in America today? Less than one ton a year. That’s embarrassing for a nuclear superpower. America’s plutonium for power initiative is a milestone in America’s history of generating power, but the government shutdowns are a setback in America’s regulation of nuclear power. But production conversion of the Cold War inventory is a cautious measure to fill fuel gaps, as well as to increase power demands.