U.S. Department of Energy proposes private use of surplus plutonium, sparking security concerns

The Energy Department announced advanced negotiations with five private nuclear companies—Oklo, Exodys Energy, SHINE, Standard Nuclear and Flibe Energy—to allow them to use the federal government's surplus weapons‑grade plutonium as fuel for small modular reactors. The move is presented as a way to address a critical nuclear fuel supply bottleneck, amid concerns over Russian control of uranium conversion capacity.

Senator Ed Markey wrote to President Trump warning that granting commercial access to plutonium could set a dangerous global precedent, increase proliferation risk and be far more costly than the Department's prior plan to dilute and bury the material. He also flagged a potential conflict of interest involving Energy Secretary Chris Wright’s former board role at Oklo. The department says any transfer would be subject to stringent safety, security and non‑proliferation safeguards, including foreign‑ownership reviews and detailed handling plans. Non‑proliferation experts have expressed alarm that moving weapons‑grade material out of tightly controlled facilities could reduce oversight.