Terrestrial Energy Inc. (NASDAQ:IMSR) stock surged Tuesday after the company secured a federal agreement that accelerates its transition from reactor design to operation.
The deal strengthens Terrestrial Energy's effort to commercialize advanced nuclear technology aimed at delivering clean, reliable power.
The company announced that it has finalized an Other Transaction Authority agreement with the U.S. Department of Energy to build and operate Project TETRA, a pilot reactor designed to validate its Integral Molten Salt Reactor technology.
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The structure allows close coordination with regulators while sidestepping slower contracting processes.
Project TETRA uses a molten salt-fueled, graphite-moderated reactor powered by low-enriched uranium with enrichment below 5% U-235. Avoiding scarce high-assay fuels is expected to simplify supply chains and support quicker deployment of commercial reactors.
The OTA framework enables Terrestrial Energy to transition rapidly from engineering review to authorized operation under DOE oversight, reducing development timelines while maintaining safety and performance standards.
With federal authorization in place, Terrestrial Energy plans to validate operations and push toward commercial licensing, positioning the pilot reactor as a bridge to large-scale deployment.
Advanced nuclear stocks Oklo Inc. (NYSE:OKLO), NuScale Power Corp. (NYSE:SMR), and Nano Nuclear Energy Inc. (NASDAQ:NNE) have stayed choppy as a once-red-hot trade cooled, with the group sliding sharply in late November as investors reassessed valuations, limited near-term revenue visibility, and the execution risk tied to getting first-of-a-kind reactor plans into the field.
IMSR Price Action: Terrestrial Energy shares were up 21.17% at $8.47 at the time of publication on Tuesday, according to Benzinga Pro data.
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