An Italian-French nuclear startup with deep roots in Italy has secured a landmark deal with the U.S. Department of Energy (DOE), positioning the country's nuclear sector at the heart of an American program to repurpose Cold War-era military-grade plutonium for civilian energy production. The arrangement, finalized alongside Silicon Valley-backed Oklo, marks a rare moment when private industry gains access to weapons material—and signals a potential shift in how surplus nuclear arsenals could fuel the next generation of reactors.
Why This Matters
• Italian technology selected: Newcleo, led by CEO Stefano Buono and headquartered between Italy and France, has been chosen for advanced negotiations to convert weapons-grade plutonium into reactor fuel—a precedent for private enterprise.
• Investment scale: The partnership involves up to $2B in commitments to build advanced fuel fabrication plants on U.S. soil, creating potential technology transfer and supply chain opportunities for Italian engineers.
• Strategic collaboration: The partnership was announced in October 2025, pooling European reprocessing expertise with American regulatory access and venture capital.
• Domestic progress: Newcleo has installed the main vessel of Precursor, a non-nuclear test reactor, at the Brasimone Research Centre in Italy, developed in collaboration with ENEA (Italian National Agency for New Technologies, Energy and Sustainable Economic Development).
A Transatlantic Nuclear Initiative
The DOE's Surplus Plutonium Utilization Program offers private firms access to excess plutonium originally produced for the U.S. arsenal during the Cold War. Instead of pursuing previous disposal approaches, the Trump administration has opened the door to commercial reuse of this material.
Newcleo and Oklo, co-founded by OpenAI chief Sam Altman, were selected in a competitive process for advanced negotiations. Both companies specialize in small modular reactors (SMR) and fast neutron technology, designs capable of efficiently utilizing recycled nuclear material as fuel.
For Newcleo, the selection validates years of research into lead-cooled fast reactors (LFR)—a fourth-generation design that uses molten lead instead of water as a coolant. The company's reactors are designed to operate on MOX fuel (mixed oxide), a blend of plutonium and depleted uranium. According to the firm, this approach could offer advantages in waste reduction and fuel efficiency compared to conventional reactor designs.
What This Means for Italy
Italy formally exited civilian nuclear power following referendums in 1987 and 2011, yet the country remains home to significant nuclear research infrastructure and expertise—particularly through ENEA, which operates the Brasimone facility in the Apennines between Bologna and Florence. That facility recently became the testing ground for Precursor, a full-scale non-nuclear prototype designed to validate the thermal and hydraulic behavior of Newcleo's lead-cooled reactor design.
The U.S. selection of Newcleo amplifies the company's international profile and could accelerate technology development for advanced reactor systems. The company is engaged in preliminary discussions with U.S. regulatory authorities regarding deployment of both reactor and fuel fabrication capabilities on American soil.
Beyond engineering and investment returns, the arrangement positions Italian nuclear science—largely dormant in domestic electricity generation—as a global export commodity. Engineers trained at ENEA or in partnership with French counterparts may find themselves working on advanced projects, while intellectual property and licensing revenues could flow back to Italian shareholders and research institutions.
Lead-Cooled Reactor Technology
Newcleo's reactor design centers on liquid lead coolant, which operates according to different thermal principles than water-based systems. In the event of overheating, lead solidifies rather than boiling off, which provides inherent safety characteristics without requiring operator intervention or backup systems. The metal also provides natural radiation shielding, potentially reducing safety risks compared to other advanced coolant designs.
Because the reactors operate with fast neutrons rather than moderated thermal neutrons, they can extract significantly more energy from fuel compared to conventional reactors. Critically, they can utilize actinides—long-lived radioactive isotopes in spent fuel—that conventional reactors cannot consume. This fuel cycle approach is central to the company's strategy: converting existing nuclear material and reducing the volume requiring permanent disposal.
The Precursor simulator, now operational at Brasimone, allows ENEA and Newcleo researchers to refine thermal-hydraulic models, validate safety systems, and train personnel. It represents one of the few active European test beds for advanced reactor technology outside France.
Strategic Implications
The decision to repurpose military plutonium for civilian use has revived discussions about dual-use technology and nuclear policy. Plutonium presents both technical and security considerations, and handling requirements for this material are stringent.
Newcleo's partnership with Oklo, formalized in October 2025, envisions a joint fuel fabrication facility in the United States capable of producing fuel assemblies for both companies' reactor designs. The collaboration combines European technical expertise—largely French, via established industrial partners—with American regulatory pathways and venture capital investment.
For Newcleo, the alliance provides a regulatory pathway in the world's largest nuclear market. For Italy, it creates potential channels for exporting reactor components, engineering services, and advanced fuel cycle expertise—even if domestic energy deployment remains politically constrained.
The Bottom Line
The U.S. Department of Energy's decision to engage with Newcleo and Oklo for advanced plutonium utilization signals both technological opportunity and policy evolution. For Italy, Newcleo's selection validates decades of investment in fast reactor science and offers potential revenue streams from intellectual property, equipment sales, and engineering talent.
As Newcleo installs test equipment at Brasimone and engages with U.S. authorities, Italy finds itself positioned at the center of advanced nuclear technology development it cannot legally deploy domestically. Whether this becomes a competitive advantage will depend on reactor performance, regulatory outcomes, and international cooperation on nuclear technology advancement.
