US and China Lead Global Fusion Funding; US Industry Seeks Federal Aid

Global Fusion Funding: The US and China at the Forefront

In the competitive arena of fusion energy investment, the United States and China are emerging as dominant players. According to a recent report by the European Union’s F4E Fusion Observatory, there has been a significant 30% increase in global investment in fusion energy, rising from $11.6 billion to $15.1 billion between June and September.

The United States leads with 53% of global funding, amounting to €6.9 billion ($8.07 billion), while China follows closely with a 34% share at €4.4 billion ($4 billion). The European Union holds about 5% of the market, with Germany contributing a major share of this investment.

Four companies—Commonwealth Fusion Systems, China Fusion Energy Co, NEO Fusion, and TAE Technologies—are particularly noteworthy, each attracting over €1 billion ($1.17 billion) in global private investment, marking them as "fusion unicorns."

Globally, 77 companies are investing in fusion technology, with the United States hosting the majority at 42, followed by China and the EU with eight companies each.

U.S. Fusion Industry's Call for Federal Financial Support

The Fusion Industry Association (FIA) emphasizes the need for substantial federal investment to rival China. "The US simply cannot afford to lose the race," the FIA stated, underscoring the urgency for government action. China is outspending the US on fusion, with an investment exceeding $6.5 billion from 2023 to 2025.

The Department of Energy (DOE) recently restructured to include an Office of Fusion, aiming to boost fusion energy development. The FIA is advocating for this office to be fully funded at $1.048 billion and suggests a one-time supplemental investment of $10 billion to strengthen U.S. leadership in fusion energy.

Progress in U.S. Fusion Energy Initiatives

Recent developments show positive strides for fusion energy in the US. The DOE has launched a Fusion Science and Technology Roadmap, outlining infrastructure needs and steps towards commercialization by the 2030s. The roadmap emphasizes "Build, Innovate, and Grow" as key drivers to deliver fusion power to the grid.

Furthermore, the FIA has introduced a new Education & Research Partnership Program to extend collaboration with universities and research institutions globally.

General Fusion's Recent Financial Activity

General Fusion in Vancouver, BC, recently raised $51.5 million CAD in new funding, pushing its total funding close to $600 million CAD. This funding comes in the wake of layoffs earlier this year and is aimed at advancing its Magnetized Target Fusion technology. The company aims to achieve a significant technical milestone of demonstrating fusion at 10 million degrees Celsius by August 2026, while planning to deploy its first commercial power plant by the mid-2030s.