China Takes the Lead in Fusion Energy
Avalanche Energy Announces Fusion Test Facility
Pacific Fusion to Build $1 Billion Fusion Test Facility in Albuquerque
European Commission Approves €202 Million for Fusion Research Facility in Spain
Fusion Industry Calls on EU For Action On ‘Three Key Challenges’
Japan’s Helical Fusion Raises $15M Funding For Fusion Reactor Development
S&P Global Lists Top US Fusion Firms
China Takes the Lead in Fusion Energy
According to two expert assessments of China’s progress with fusion energy, China is making progress towards deploying fusion energy as a commercial offering at a significantly faster rate than the US or any other western nation.
In an April 2025 article in IEEE Spectrum, the assessment is that China is on the verge of surpassing the US in the quest for commercial nuclear fusion.
In a July 2025 article in MIT Technology Review a team of four experts in fusion science report that the nation is first in time to market with commercial fusion will achieve this outcome due to success in developing the complex supply chains and the ability to build fusion plants at a scale large enough to drive down economic costs.
IEEE Spectrum
China is building multiple fusion energy projects, and some of them are larger and more capable than their counterparts in the US. The key fusion machine designs being exploited for development in China are the Tokamak and laser based fusion. The article notes that the speed at which China is building these fusion facilities and the amount of state enterprise funding being committed to them put the US at a distinct disadvantage.
A second key area is competition for talent. Key fusion scientists, discouraged by the US lack of government support, are voting with their feet to other nations, including China, where their knowledge, skills, and abilities will be appreciated and compensated based on the competitive advantage they can deliver.
In terms of sheer funding, the IEEE article, citing US Department of Energy figures, reports that China is pouring as much as $3 billion a year into fusion development projects. By comparison, federal government support in the US is a reported to be $800 million/year.
The bottom line, says the IEEE article, is that “whichever nation first harnesses practical fusion energy won’t just light up cities. It may also reshape the balance of global power.”
MIT Technology Review
Taking a theme from the IEEE Spectrum report, this article states that “fusion energy holds the potential to shift a geopolitical landscape that is currently configured around fossil fuels.”
China’s industrial base is what gives it a leg up in the race to achieve commercial fusion. Mastery of complex supply chains in terms of technology and materials is a key area where the US lags behind China.
The biggest bet China is making on fusion technology is the tokamak design which uses a magnetic field to confine ionized gas – plasma – to fuse hydrogen nuclei. The process, when successful, releases extraordinary amounts of heat.
The MIT Technology article emphasizes as key themes that China is investing in several critical systems including plasma confinement and heating, fuel production and processing, blankets and heat flux management, and power conversion which is getting the heat out of the fusion reactor and into a power generation turbine and generator.
Several areas of industrial supply chain mastery stand out for China. They include thin film processing, large metal alloy structures, and power electronics. On the plus side for the US, the MIT Technology article assesses that there are three areas where the US can excel in terms of supply chains. They are cryo-plants for the magnets that confine plasma, fuel processing, and the blankets that line the walls of a tokamak fusion machine.
China has also invested in fusion supply chain consortiums. By working across multiple industries, China can transfer innovations faster to fusion than the US.
One way the US can speed up its development of commercial fusion is to change government capital gains policies for firms that work on thin film and metal alloy production.
In summary the MIT article says that the US has less than a decade to achieve leadership in fusion or be left behind by China with stark and perhaps unrecoverable consequences.
China Tokamak Runs for 1,000 Seconds
In January 2025 the Chinese Academy of Sciences (CAS) said its experimental tokamak nuclear reactor successfully ran for more than 1,000 seconds (17 minutes).
China’s reactor, officially known as the Experimental Advanced Superconducting Tokamak (East), exceeded its previous record operating time of 403 seconds.
However, there are several hurdles in the way of creating a viable fusion reactor, including reaching temperatures exceeding 100 million degrees Celsius, maintaining stable long-term operation, and ensuring precise control of the nuclear fusion process.
To enable the self-sustaining circulation of the fourth state of matter, plasma, a fusion device must achieve “stable operation at high efficiency for thousands of seconds,” says Song Yuntao, vice president at CAS’s Hefei Institutes of Physical Science.
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Avalanche Energy Announces New FusionWERX Test Facility to Accelerate Commercial Fusion Development
Avalanche Energy, a fusion energy startup developing modular compact fusion machines, announced the launch of FusionWERX, its new fusion test facility located in Richland, WA. FusionWERX is intended to serve as a first-of-its-kind commercial-scale testing facility for advanced fusion technologies, offering access to private companies, universities, national laboratories, and public-private consortia working to accelerate the path to commercial fusion power.
FusionWERX will operate under a broad-scope radioactive materials license and will have tritium handling capacities available in the private sector when fully licensed and operational. This unique licensing framework positions FusionWERX as a critical enabler for fusion research and development, supply chain advancement, and workforce training within a flexible intellectual property environment.
The FusionWERX facility will incorporate several key systems designed to support a wide range of fusion concepts and applications:
High flux fusion neutron sources based on Avalanche’s proprietary Orbitron platform, providing tunable neutron energy environments from high energy 14.1 megaelectron volts (MeV) to thermal neutrons for materials testing and fusion system validation.
Blanket and shielding test beds that will enable the demonstration of purpose-fit technologies applicable to multiple plasma and fusion device architectures.
Hot cells designed for remote handling, processing, and analysis of activated materials.
Integrated tritium management systems capable of extracting, purifying, and recycling tritium for continuous experimental operation.
Fusion Fuel Cycle
With the launch of the FusionWERX facility, Avalanche also announced that it agreed to a Memorandum of Understanding (MoU) with Fusion Fuel Cycles (FFC), one of the world’s leading providers of fusion fuel cycle technologies. The collaboration will include research, development, demonstration, and commercialization of technologies critical to the commercial fusion industry including neutron sources, tritium breeding blankets, deuterium-tritium (D-T) fuel cycle systems, and integrated test facilities for materials and tritium research.
Fusion Incubator Program
Avalanche plans to bring FusionWERX online in phases, with initial construction slated to begin in summer 2025. The company is actively engaging with partners interested in accessing the facility for upcoming fusion programs and collaborative development projects.
Along with managing the FusionWERX operations, Avalanche intends to incubate a number of neutron-enabled businesses focused on imaging/sensing, radiation effects testing, and fusion materials development. The site will also be the location where Avalanche will operate its Q>1 deuterium-tritium test program with the goal of developing the world’s first net-energy compact fusion reactor system.
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Pacific Fusion to Build $1 Billion Fusion Test Facility in Albuquerque
The firm plans to build a 225,000 square plant that will employ 200 people
The Albuquerque Journal newspaper reports that the New Mexico Economic Development Department and Pacific Fusion officials signed a memorandum of understanding for the site. Officials had been working on the project behind the scenes for the past few months under the pseudonym Project Solis. If the New Mexico site doesn’t pan out, Pacific Fusion says it may consider a site near Lawrence Livermore lab in California.
Venture capital firms General Catalyst and Breakthrough Energy Ventures were among the sources of more than $900 million in Series A funding into Pacific Fusion last year. Pacific Fusion Co-Founder and Chief Operating Officer Carrie Von Muench said she is confident the additional needed funds can be raised for the project.
State officials are in the process of negotiating incentives to help the company such as the Local Economic Development Act and the Job Training Incentive Program.
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European Commission Approves €202 Million for Fusion Research Facility in Spain
IFMIF-DONES is designed to test and qualify materials for future fusion nuclear power plants
(NucNet) The European Commission has approved an investment of €202m ($234 million) for the construction and commissioning of the planned IFMIF-DONES particle accelerator in Escúzar, near Granada in southern Spain, representing approximately 25% of the total cost of the project.
The IFMIF-DONES facility is part of European plans for developing fusion energy. Initial site preparation work for the facility began in October 2023.
It is designed to test and qualify materials for future fusion power plants and will be a critical component in the development of fusion energy. IFMIF-DONES will use a high-intensity neutron source to simulate the conditions materials will experience in a fusion reactor, allowing scientists to study their behavior under those harsh conditions.
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Fusion Industry Calls on EU For Action On ‘Three Key Challenges’
Europe Risks Falling Behind. Bloc ‘being outpaced’ on strategy, regulatory clarity and targeted investment
(NucNet) The Fusion Industry Association (FIA) has called on the European Commission to address three key challenges in a bid to accelerate commercial fusion deployment in Europe.
The Washington, DC, based FIA said in evidence submitted for the EU’s fusion strategy that fusion is a breakthrough technology that could be transferred to commercial use within 10 years. It has applications beyond energy production, including in high-performance computing, cryogenics, vacuum engineering and power electronics.
Planned for publication by the end of 2025, the strategy is intended to be a key step to position the EU at the forefront of fusion development and accelerate commercial fusion energy in the EU.
The FIA warned that the EU is in danger of falling behind in the race for commercialization as other countries outpace it in terms of national strategies, regulatory clarity and targeted investment.
Europe needs to address three key areas. It needs a coherent regulatory framework across member states, targeted funding mechanisms, and increased involvement of private companies in planning.
On regulation, the FIA called for a dedicated regulatory framework for fusion, separate from nuclear fission, to address fusion’s unique safety profile, commercialization aspects and socio-economic benefits.
The FIA recommends targeted funding mechanisms and instruments specifically designed for commercial fusion development, including mechanisms to de-risk projects and attract private investment. It advocated using the European Investment Bank (EIB) for loan guarantees to help fusion companies scale up for commercialization. The FIA highlighted the need for a more integrated and liquid venture capital market within the EU, which would lower barriers for investment in high-risk, long-term fusion projects.
On planning, the FIA called for greater involvement of private fusion companies in “EU-level strategic planning and coordination activities”.
Strategy Will ‘Maintain EU Leadership’, Says Commission
It said the EU should adopt a technology-neutral approach to fusion research and development, supporting commercially relevant science and technology applicable across multiple technologies.
The FIA also recommended aligning public fusion research with the needs of commercialization, giving priority to R & D that can accelerate commercialization.
It proposed that the EU should not focus solely on €20bn ($23.4 billion ) International Thermonuclear Experimental Reactor (ITER). Instead, it should create “an innovation environment that allows for multiple pathways to commercialization”.
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Japan’s Helical Fusion Raises $15M Funding For Fusion Reactor Development
Japan-based fusion energy developer Helical Fusion has closed the latest investment in its Series A funding round, securing an additional $15 million. This brings total capital—including grants and loans to $35 million, accelerating the “Helix Program”, a roadmap toward a steady-state net power fusion plant in the 2030s.
This investment supports the company’s Helix program, which aims to establish a steady-state net power fusion plant by the 2030s.
The investors supporting Helical Fusion’s Series A funding round include SBI Investment, Keio Innovation Initiative (KII), 19 other institutions and public financial institutions.
Helical Fusion’s fusion reactor is based on the stellarator design, an approach to nuclear fusion that enables a stable and continuous plasma operation.
Helical Fusion’s Helix program comprises two projects: Helix KANATA, a pilot plant engineered to achieve continuous, net-positive electricity generation from fusion power, and Helix HARUKA, dedicated to validating components and systems.
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S&P Global Lists Top US Fusion Firms
According to S&P Global, as of July 2025 the top three companies by investment in the fusion space are Commonwealth Fusion Systems (CFS), TAE Technologies and Helion.
Despite having cumulatively raised billions in investments, these firms will need billions more to build and test their first prototypes to convince investors and potential customers that the commercial version will work as advertised. In summary, funding for fusion startups exceeds $7.1 billion across 50 startups.
Commonwealth Fusion Systems
Commonwealth Fusion Systems has raised over $2 billion in funding, the most of any fusion company in the US. Investors include Google, Temasek Holdings (Pvt.) Ltd., Eni, and Bill Gates. CFS emerged from the Massachusetts Institute of Technology’s Plasma Science and Fusion Center and continues collaborating with MIT, providing privileged access to top research institutions and national laboratories.
CFS’ approach is deuterium-tritium fusion using a compact tokamak reactor known as SPARC. The company aims to begin operations at the SPARC reactor in 2026. The ultimate goal of this reactor is to show proof of breakeven, which the company hopes to achieve in 2027.
In 2024, CFS announced plans for the first grid-scale fusion plant in Chesterfield County, Va. The facility will be based on the SPARC design and is expected to produce 400 MW of output. The company plans for the plant to be operational in the early 2030s.
TAE Technologies
TAE Technologies, Inc., formerly Tri Alpha Energy, is a US company established in 1998 and based in Foothill Ranch, CA, TAE uses the aneutronic hydrogen-boron fusing elements. TAE uses a proprietary approach called advanced beam-driven FRC (field-reversed configuration).
One major achievement for TAE involves the C-2W/Norman reactor, which has shown proof of concept for stable plasma at 70 million degrees Celsius.
The company’s next goal is the completion of the Copernicus reactor. Similarly to CFS’s SPARC reactor, the goal of the Copernicus reactor is to achieve breakeven or positive energy generation.
TAE has secured over $1.2 billion in funding from companies such as Google, Venrock and Chevron Corp. TAE has also built partnerships with Google to use AI in process optimization and with universities such as UC Irvine and Princeton to collaborate on advancing fusion technologies.
Helion
Helion has raised over $1 billion in funding and has inked an ambitious power purchase agreement with Microsoft for 50 MW of fusion energy by 2028. Helion was founded in 2013 and is headquartered in Everett, Wash.
Helion uses a deuterium-He3 fusion. Like TAE, Helion uses a form of field-reversed configuration to trap plasma. Its Trenta prototype successfully achieved plasma temperatures of 100 million degrees Celsius, and it is currently developing the Polaris reactor. Polaris aims to operate at temperatures beyond 100 million degrees and achieve breakeven.
Other Fusion Firms that Raised at Least $100 Million
General Fusion, with nearly $400 million in funding, was founded in 2002 and is based in Richmond, Canada. General Fusion uses a deuterium-tritium fusion with a spherical tokamak approach and hopes to achieve breakeven in 2026 with its LM26 fusion demonstration machine.
Last May General Fusion, citing shortfalls in cash, reportedly laid off 25% of its 140 employees or about 35 staff. General Fusion CEO Greg Twinney said. “We are ready to execute our plan but are caught in an economic and geopolitical environment that is forcing us to wait.” The company is reported to be seeking $125 million in new funding to continue its product development work.
Zap Energy, which spun off of the Fusion Z-pinch Experiment (FuZE) at the University of Washington, has attracted over $300 million in investments and uses a Z-pinch design that generates a magnetic field via an electric current in the plasma rather than using external magnetic caging.
Tokamak Energy Ltd., an offshoot of Culham Centre for Fusion Energy in UK, Oxfordshire, has accumulated $300 million in investments and uses a spherical tokamak design.
The European company Marvel Energy recently passed the $100 million mark with its sodium-potassium-cooled microreactor.
Denver’s Xcimer Energy Inc., founded in 2022, which has received just over $100 million in funding and is harnessing the same laser-driven-inertial fusion that powered Lawrence Livermore Lab’s work.
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