Terrestrial Energy Executes DOE Agreement for Project TETRA Under Advanced Reactor Pilot Program

Rhea-AI Summary

Terrestrial Energy (NASDAQ: IMSR) executed an Other Transaction Authority (OTA) agreement with the U.S. Department of Energy on Jan. 6, 2026 to construct and operate Project TETRA, a pilot Integral Molten Salt Reactor (IMSR).

The OTA enables a streamlined DOE authorization to move from design to operation, supports commercialization of IMSR plants, and complements the company's Sept. 2025 selection for the DOE Fuel Line Pilot Program. The IMSR commercial design is specified at 822 MWth (390 MWe) and uses SALEU fuel <5% U-235 to avoid HALEU dependence.

Positive

• IMSR commercial design specified at 822 MWth (390 MWe)
• OTA enables expedited move from design to operation under DOE authorization
• Selected for DOE Fuel Line Pilot Program in September 2025
• Uses SALEU fuel (<5% U-235), reducing HALEU dependency

Negative

• Pilot authorization does not replace required commercial licensing

News Market Reaction

+30.33% 7.9x vol

32 alerts

+30.33% News Effect

+32.1% Peak in 11 hr 5 min

+$224M Valuation Impact

$964M Market Cap

7.9x Rel. Volume

On the day this news was published, IMSR gained 30.33%, reflecting a significant positive market reaction. Argus tracked a peak move of +32.1% during that session. Our momentum scanner triggered 32 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $224M to the company's valuation, bringing the market cap to $964M at that time. Trading volume was exceptionally heavy at 7.9x the daily average, suggesting very strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Thermal output: 822 MWth Electric output: 390 MWe U-235 content: Less than five percent U-235

3 metrics

Thermal output 822 MWth Commercial IMSR plant design thermal power

Electric output 390 MWe Commercial IMSR plant design electric capacity

U-235 content Less than five percent U-235 SALEU UF₄-based fuel for TETRA reactor

Market Reality Check

Price: $11.69 Vol: Volume 1,950,826 vs 20-da...

normal vol

$11.69 Last Close

Volume Volume 1,950,826 vs 20-day average 1,760,764 (relative volume 1.11). normal

Technical Price $6.99 is trading below the 200-day MA at $10.28, well under the $21.00 52-week high.

Peers on Argus

No peer stocks with momentum or same-day headlines were recorded; the 7.04% move...

No peer stocks with momentum or same-day headlines were recorded; the 7.04% move and OTA news appear stock-specific rather than sector-driven.

Historical Context

4 past events · Latest: Nov 25 (Positive)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Nov 25	Investor conferences	Positive	-4.0%	Announcement of participation in two December 2025 investor conferences.
Nov 13	Leadership hires	Positive	-11.0%	Two senior hires to drive U.S. IMSR commercialization and DOE coordination.
Nov 05	Fuel plant contract	Positive	+13.7%	Expanded Westinghouse contract for an IMSR fuel pilot plant at Springfields.
Nov 04	Executive appointment	Positive	-11.6%	Appointment of VP Business Development to support IMSR commercialization.

Pattern Detected

Recent positive corporate and DOE-related milestones often saw mixed or negative next-day price reactions, with only the Westinghouse fuel contract showing a clearly aligned positive move.

Recent Company History

Over the last few months, Terrestrial Energy reported several commercialization and partnership milestones. On Nov 4, 2025 it added a VP of Business Development, followed by an expanded Westinghouse fuel-plant contract on Nov 5, 2025, which coincided with a 13.69% gain. Subsequent executive hires and conference participation in mid-to-late November saw share price declines. Today’s OTA agreement with DOE continues this theme of deepening government and fuel‑supply engagement for IMSR deployment.

Market Pulse Summary

The stock surged +30.3% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +30.3% in the session following this news. A strong positive reaction aligns with the strategic significance of securing a DOE Other Transaction Authority agreement for Project TETRA. Prior news on DOE programs and fuel partnerships, such as the Westinghouse fuel-plant contract that coincided with a 13.69% gain, showed investors rewarding tangible commercialization steps. However, past declines after positive corporate updates suggest that enthusiasm sometimes faded, underscoring execution, regulatory progress, and funding milestones as key watchpoints.

Key Terms

other transaction authority, integral molten salt reactor, generation iv reactor, molten salt-fueled, +3 more

7 terms

other transaction authority regulatory

"announced that it has executed an Other Transaction Authority (OTA) agreement"

Other transaction authority is a legal power that lets certain U.S. government agencies sign flexible, custom agreements for research, prototypes and limited production outside standard federal contracting rules. For investors, it matters because contracts awarded under this authority can produce faster, less bureaucratic revenue and bring new suppliers into government work, but they are often less transparent and can be smaller, shorter-term or harder to predict than traditional government contracts—like a bespoke order versus a catalog purchase.

integral molten salt reactor technical

"pilot reactor which will support Integral Molten Salt Reactor (IMSR) plant development"

An integral molten salt reactor is a type of nuclear power design where the nuclear fuel is dissolved in a high-temperature, liquid salt that circulates inside a single, sealed vessel. Think of it like a compact, self-contained boiler where the fuel and coolant are the same liquid, which can simplify systems, reduce moving parts, and improve passive safety. Investors care because this design promises lower construction and operating complexity, potentially faster deployment, and different regulatory and commercial risk profiles compared with conventional reactors.

generation iv reactor technical

"using its Generation IV reactor technology, today announced that it has executed"

Generation IV reactor describes a set of advanced nuclear power plant designs intended to be safer, more efficient, and produce less lasting waste than current reactors; think of them as the next-generation models of power plants. For investors, they matter because they promise lower operating costs, potential for longer lifetimes and new markets, but also involve large upfront financing, long regulatory timelines, and technical risks that affect returns and project viability.

molten salt-fueled technical

"design and safe operation of the TETRA reactor, a molten salt-fueled, graphite-moderated reactor"

A molten salt-fueled system uses nuclear fuel dissolved in a hot, liquid salt that flows through the reactor to generate heat, rather than solid fuel rods. For investors, this implies a different risk and reward profile: potential benefits include simpler cooling, lower pressure operation and higher thermal efficiency (think of hot syrup carrying heat instead of solid blocks), but it also brings technical complexity, regulatory uncertainty and long development timelines that affect capital needs and returns.

graphite-moderated reactor technical

"TETRA reactor, a molten salt-fueled, graphite-moderated reactor that uses standard assay"

A graphite-moderated reactor uses blocks of carbon (graphite) inside the core to slow fast neutrons so a controlled chain reaction can continue with particular fuels; think of the graphite as a traffic cop that calms speeding particles. Investors care because that design changes fuel choices, efficiency, safety characteristics, regulatory scrutiny and decommissioning costs, all of which affect operating profit, capital needs and long-term risk.

uf₄-based fuel technical

"low-enriched UF₄-based fuel (SALEU) containing less than five percent U-235"

UF4-based fuel is nuclear reactor fuel in which uranium is chemically combined as uranium tetrafluoride (UF4), a solid or dissolved fluoride form used in some reactor designs or as an intermediate in fuel processing. It matters to investors because the choice of fuel chemistry affects a plant’s performance, operating costs, regulatory approvals, handling and waste rules — similar to how choosing a specific battery type changes a device’s safety, lifetime and supply needs.

haleu technical

"eliminates substantial obstacles from high assay low-enriched (HALEU) fuel dependency"

HALEU (high-assay low-enriched uranium) is uranium fuel enriched to a higher level than traditional reactor fuel but below weapons-grade, roughly like a higher-octane gasoline for nuclear reactors. It matters to investors because this fuel enables newer, smaller and more efficient reactors to run longer or produce more power from less material, so availability, regulation and production costs can affect utilities, reactor developers and mining companies’ prospects.

AI-generated analysis. Not financial advice.

OTA agreement provides for construction and operation of Project TETRA, Terrestrial Energy’s pilot reactor using Integral Molten Salt Reactor technology

Terrestrial Energy now positioned to move quickly from design to operation under DOE authorization, laying the groundwork for swift commercialization of IMSR plants

CHARLOTTE, N.C., Jan. 06, 2026 (GLOBE NEWSWIRE) -- Terrestrial Energy Inc. (NASDAQ: IMSR) (“Terrestrial Energy” or “the Company”), a developer of small modular nuclear power plants using its Generation IV reactor technology, today announced that it has executed an Other Transaction Authority (OTA) agreement with the U.S. Department of Energy (DOE) for Project TETRA, a groundbreaking initiative to construct and operate a pilot reactor which will support Integral Molten Salt Reactor (IMSR) plant development. This announcement marks an important milestone in Terrestrial Energy’s engagement with the Advanced Reactor Pilot Program, established by Executive Order 14301, under which the Company is targeting IMSR plant deployment facilitated by the DOE’s accelerated authorization of pilot TETRA reactor operation.

The execution of an OTA demonstrates the Company’s structured program, which will support IMSR plant commercialization and its leading market position in the advanced reactor sector. The agreement establishes a direct, streamlined collaboration with the DOE to review and authorize the design and safe operation of the TETRA reactor, a molten salt-fueled, graphite-moderated reactor that uses standard assay, low-enriched UF₄-based fuel (SALEU) containing less than five percent U-235. This agreement enables Terrestrial Energy to move quickly from design to operation under DOE authorization. Executed under DOE’s authority at 42 U.S.C. § 7256(g), the OTA enables the Company to operate outside traditional federal contracting constraints, providing a flexible and agile framework designed for swift advanced reactor innovation.

“This OTA is a partnership with the U.S. Department of Energy to accelerate development, licensing, and operation of IMSR plants servicing critical energy needs,” said Simon Irish, CEO of Terrestrial Energy. “The agreement sits on our development center-path, allowing the Company to expedite key elements of its program to prepare licensing applications for commercial plant operation. The pilot TETRA reactor project affirms our position as a leading advanced reactor innovator and will demonstrate our ability to deliver the innovations necessary for clean, firm and affordable energy in a competitive timeframe.”

Terrestrial Energy’s commercial IMSR plant is designed to produce 822 MWth (390 MWe) of flexible low-cost clean firm energy for electricity generation and industrial heat applications. Its high-temperature molten salt fuel design supports electricity generation at superior efficiency and direct thermal delivery for manufacturing, data center operations, and other industrial heat end users. The reactor’s use of readily available SALEU fuel eliminates substantial obstacles from high assay low-enriched (HALEU) fuel dependency, strengthening supply security and enabling rapid scalability with existing U.S. manufacturing infrastructure. With IMSR technology, Terrestrial Energy is creating a short and practical path to low-cost clean firm nuclear energy at scale.

The Advanced Reactor Pilot Program, established under Executive Order 14301, enables the DOE to authorize privately built reactors outside its national laboratories. The program provides a streamlined pathway to regulatory authorization for operation, bridging the gap between pilot reactor operations for system testing, and licensing for commercial plant operation, advancing U.S. leadership in the advanced reactor sector. In September 2025, Terrestrial Energy was separately selected for the DOE Fuel Line Pilot Program, demonstrating the Company’s broad engagement with DOE programs to expedite commercial operation of small and modular nuclear plants that use advanced reactor technologies.

About Terrestrial Energy

Terrestrial Energy is a developer of Generation IV nuclear plants that use its proprietary Integral Molten Salt Reactor (IMSR). The IMSR captures the transformative operating benefits of molten salt reactor technology in a plant design that represents true innovation in capital efficiency, cost reduction, versatility and functionality of nuclear energy supply. IMSR plants are designed to be small and modular for distributed supply of low-cost, reliable, dispatchable, clean, high-temperature industrial heat and electricity, and to be customized for dual-use energy role relevant to many industrial applications, such as petrochemical and chemical synthesis, and data center operation. In so doing, IMSR plants extend the application of nuclear energy far beyond electric power markets. Their deployment will support the rapid global decarbonization of the primary energy system across a broad spectrum and increase its sustainability. Terrestrial Energy uses an innovative plant design together with proven and demonstrated molten salt reactor technology and readily-available and inexpensive standard-assay low-enriched uranium in its fuel for a nuclear plant with a unique set of operating characteristics and compelling transformative commercial potential. Terrestrial Energy is engaged with regulators, suppliers, industrial partners and energy end-users to build, license and commission the first IMSR plants in the early 2030s.

Forward-Looking Statements

The statements contained in this press release that are not purely historical are forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements speak only as of the date of this press release and involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) risks related to the development, manufacturing and construction of IMSR Plants and key components, including potential delays, cost overruns and contractor performance issues; (2) the Company’s ability to obtain applicable regulatory approvals and licenses on a timely basis or at all; (3) the ability of management to manage growth properly; (4) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors, including from alternative energy technologies, energy price volatility, and competition from other advanced reactor developers; (5) potential supply chain constraints and cost inflation for specialized nuclear-grade materials and components; (6) any failure to comply with the laws and regulations governing the use, transportation, and disposal of toxic, hazardous and/or radioactive materials; (7) changes in domestic and foreign business, market, financial and political conditions, and in applicable laws and regulations, including tariffs; (8) the ability to raise additional funding in the future; (9) the outcome of any legal proceedings that may be instituted against the Company; and (10) other risk factors described herein as well as the risk factors and uncertainties described in the documents filed by the Company from time to time with the U.S. Securities and Exchange Commission (the “SEC”).

The foregoing list of risk factors is not exhaustive. You should carefully consider the foregoing risk factors and the other risks and uncertainties described in the documents filed by the Company from time to time with the SEC. In addition, there may be additional risks that the Company presently knows, or that it currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this communication should be regarded as a representation or warranty, either express or implied, by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made.

In addition, the information contained in this press release is provided as of the date hereof and may change, and the Company and its representatives and affiliates specifically disclaim any obligation to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, inaccuracies, future events or otherwise, except as may be required under applicable securities laws. Information contained on our website is not a part of or incorporated into this press release.

Terrestrial Energy Investor Center:

https://www.terrestrialenergy.com/investors

Terrestrial Energy Media & Investor Contact:

TerrestrialEnergy@icrinc.com

FAQ

What did Terrestrial Energy announce about Project TETRA on Jan. 6, 2026 for IMSR?

Terrestrial Energy executed a DOE OTA to build and operate Project TETRA, a pilot IMSR reactor.

How large is Terrestrial Energy's commercial IMSR plant design (IMSR symbol)?

The commercial IMSR design is listed at 822 MWth (390 MWe).

How does the DOE OTA affect IMSR commercialization timelines for IMSR (NASDAQ: IMSR)?

The OTA enables a streamlined DOE authorization to move faster from design to pilot operation, supporting commercialization preparation.

What fuel does Project TETRA use and how does it affect supply for IMSR?

TETRA uses SALEU fuel <5% U-235, which the company says reduces dependence on HALEU and supports supply security.

Was Terrestrial Energy part of any DOE program before Jan. 2026 related to IMSR development?

Yes; the company was selected for the DOE Fuel Line Pilot Program in September 2025.

Does the OTA authorization mean IMSR commercial plants are fully licensed to operate?

No; the OTA authorizes pilot operation and testing but commercial licensing for full plant operation remains required.