Oklo Inc ( OKLO ) shares are trading higher. The company on Tuesday announced that it signed a preferred supplier agreement with Siemens Energy.

What Happened: Oklo ( OKLO ) announced the signing of a preferred supplier agreement with Siemens for the power conversion system of its Aurora powerhouse. Oklo ( OKLO ) noted that the agreement is a key strategic development in the company’s supply chain management.

Siemens Energy is a supplier of steam turbine and generator technology, which is part of the conventional island in small and large nuclear generation plants. Siemens will supply the power conversion and supporting systems, fostering efficiencies through economies of scale.

Oklo ( OKLO ) expects the standardizing of equipment across its powerhouses to result in cost savings in manufacturing, construction, operations and maintenance. Utilizing shared spare parts across deployment is expected to reduce maintenance downtime, enhance reliability and improve overall performance.

“We prioritize cost in our engineering process to fully leverage the advantages of fast fission technology,” said Jacob DeWitte, co-founder and CEO of Oklo ( OKLO ).

“Our technology is based on proven designs, allowing us to utilize small, pre-fabricated, and non-pressurized components made from readily available materials and existing supply chains, further reducing costs and complexity.” 

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Oklo’s fast fission technology utilizes liquid metal as a coolant, which has a high boiling point and allows the reactor to operate at high temperatures without being pressurized. This design enables the use of commonly available alloys.

The preferred supplier agreement builds on a previously signed memorandum of understanding and underscores Oklo’s ambitions to bring cost-efficient advanced fission technology to market. Oklo ( OKLO ) noted that it now has over 1,300 megawatts in non-binding letters of intent with customers.

OKLO Price Action: Oklo ( OKLO ) shares were up 4.54% at $7.37 at the time of publication, according to Benzinga Pro.