Fusion companies raised a total of $2.64bn of investment in the 12 months to July 2025. According to The Fusion Industry Association (FIA) and its latest Global Fusion Industry Report. This sum is the highest since 2022 and marks a 178% increase on the figure from 2024. Of the 53 fusion companies featured in the report, total funding stands at $9.766bn. This, says the FIA, is a five-fold increase since 2021.
This total includes several major funding rounds including the $900m Series A raise for US-based Pacific Fusion, which emerged from stealth in November 2024. Other significant rounds included a $425m Series F raise for US-based Helion in January 2025, and the €113m ($132m) Series B raise for Germany-based Marvel Fusion.
Financial backing for the sector is coming from a wide range of investors, the report says, including deep tech venture capital firms such as DCVC and Breakthrough Energy Ventures. In addition, industrial giants such as Chevron, Siemens Energy and Nucor have also pitched into the fusion sector, as well as sovereign investors and quasi-public funds. This includes bodies such as In-Q-Tel, the European Innovation Council Fund, and Plynth Energy. The FIA report also identifies strategic players from the energy sector like Shell Ventures and Energy Impact Partners who are ramping up overall investment in the sector. Crucially, public funding invested in fusion companies also increased by 84% from 2024, the FIA says. This is up by almost $360m to nearly $800m in total.
Taking stock of the fusion landscape
Based on answers to a survey issued to private fusion companies, this is the fifth annual Global Fusion Industry Report from the FIA. With 53 fusion companies responding to the survey, this is up from 23 in 2021 with a further eight new entrants contributing since the last survey in 2024.
The report provides a view of the growth of the fusion sector and progress towards commercial fusion and makes for broadly positive reading. However, despite the reported growth 83% of survey respondents still consider investment a major challenge. Asked how much more investment each company would need to bring their first pilot plants online, responses ranged from $3m to $12.5bn, with a median response of $700m. While this is eight times more than has been committed to the industry to date, the report emphasises that this should not be taken as the total investment needed, as there will inevitably be some market consolidation.
Nevertheless, fusion companies remain confident in their timelines for delivering fusion-generated electricity to the grid, with 84% targeting the end of the 2030s and 53% 2035.
Several recent breakthroughs suggest this confidence is not wildly misplaced, despite the long-standing reputation of fusion as a technology which is always decades away. Recently, for example, the Tennessee Valley Authority (TVA) and US start-up Type One Energy signed the first set of commercial contracts related to Project Infinity, a programme that aims to develop fusion power plant technology to supply the Tennessee Valley with energy by the mid-2030s.
TVA, through its Power Service Shops (PSS) will assist in the development of welding and fabrication techniques used for the Energy Infinity One stellarator currently being deployed at TVA’s Bull Run plant near Knoxville.
They are also intended for potential subsequent TVA fusion power plant projects, which will utilise Infinity Two stellarator technology. Type One Energy signed a Cooperative Agreement with TVA in February to jointly develop plans for the project and in June, Type One completed the first formal design review of Infinity Two. This is a 350 MWe power plant.
The TVA PSS draws on expertise in power generation component overhaul and repair techniques to aid in developing welding processes and fabrication methods for what is expected to be the world’s first commercial fusion power plant project.
In another US development, Helion has begun work on the site of its first fusion power plant, Orion, in Chelan County, Washington state.
The site, on land leased from the Chelan County Public Utilities District, was chosen for its ready access to transmission and legacy of energy innovation. Since 2023, Helion has been engaging with local and state stakeholders including government agencies, Tribal Nations, and the general public to prepare for a siting and permitting decision. In 2023, Helion announced the world’s first power purchase agreement (PPA) that will provide energy from the plant to Microsoft by 2028, with Constellation Energy serving as power marketer.
Helion’s approach of rapid iteration and testing has enabled the company to make steady progress toward a commercial fusion machine. Its 7th-generation prototype, Polaris, is expected to demonstrate the first electricity produced from fusion while its previous prototype, Trenta, saw Helion become the first private company to achieve a fuel temperature of 100m degrees Celsius, which is generally considered the required operating temperature for a commercial fusion power plant.
Commenting David Kirtley, Helion’s co-founder and CEO, said: “Since we founded the company, we have been completely focused on preparing fusion technology for commercialisation and getting electrons on the grid. Starting site work brings us one step closer to that vision.”
According to Kirtley, Orion serves as an important milestone on that path, enabling the company to deliver at least 50 MW of carbon-free electricity to fusion’s first customer, Microsoft. “What excites me most is that, for the first time in history, a fusion power plant has successfully completed a rigorous environmental review with positive determination and strong public support”. He continued: “Fusion is no longer a dream, it’s happening now. And we’re just getting started”.
Location leaders
More than half of the fusion energy startups detailed in the report (29) are based in the US and 13 are in Europe with the others in countries across Asia and Oceania. China, for instance has established China Fusion Energy Company directly under China National Nuclear Corporation (CNNC). It will focus on the overall design, technology verification, digital R&D and other businesses, asiming to build a technology R&D platform and a capital operation platform.
At the recent inaugural meeting, China Fusion signed a cooperation agreement to deepen the fusion innovation consortium with Shanghai Jiao Tong University, China Electrical Equipment Group, Shanghai Electric Group, Shenergy Group and other units in Shanghai as well as capital and share expansion agreements with shareholders including CNNC and PetroChina Kunlun Capital, Shanghai Future Fusion, China Nuclear Powe and others.
The news immediately followed the launch of a new tokamak in China with the final stage of assembling the Burning Plasma Experimental Superconducting Tokamak (Best) now underway. Located at the Institute of Energy in the Hefei Comprehensive National Science Centre, BEST began construction in 2023 and is expected to be completed in 2027. The main building has been completed and pre-assembly of different components has begun.
BEST is apparently an intermediate step between China’s Experimental Advanced Superconducting Tokamak (EAST) and the much larger future demonstration reactor the Chinese Fusion Engineering Demo Reactor (CFEDR). Designed to achieve real-world energy production, BEST aims to achieve a five-fold energy gain through fusion.
Growing the workforce
The FIA survey showed fusion companies directly employ 4,607 people and support at least 9,300 supply chain jobs, “though this is likely an undercount as not all companies provided employee data”. Since 2021, the number of people employed directly by fusion companies has more than quadrupled.
“With a half-decade of consistent data, we can now identify clear trends that speak to both the promise and challenges of commercial fusion energy,” said FIA CEO Andrew Holland in a statement. “The acceleration of capital, even when the global economy has tightened, is a signal of maturing investor confidence, technological progress, and a rapidly coalescing supply chain. The maturation of the ecosystem, and increased interest from governments via public-private partnerships show fusion is no longer a purely scientific effort; it is a global industrial movement.”
The companies surveyed did identify a range of near-term challenges that must be overcome by 2030. The obvious challenge of achieving sufficient fusion power gain tops the list, but other technical concerns include fuel cycle sufficiency and developing neutron-resilient materials, along with resolving engineering questions unique to fusion. Funding also remains a major issue reflecting the long development timelines and capital intensity of the industry. The responses highlight that while fusion’s promise is within reach, sustained progress will require a continuation of technological breakthroughs and financial, regulatory, and policy support.
Nonetheless, given the number of recent breakthroughs that are indicative of progress, barriers to fusion development are apparently being steadily eroded.
The FIA report concludes: “After writing five of these reports, the trajectory is clear. Fusion is no longer a dream that is perennially deferred to ‘20 years from now’. It is a technology being built today, with tangible progress year over year. The next few years will determine not just which companies succeed, but how this generation delivers on a promise made decades ago when the potential of fusion was discovered: to power the world with secure, limitless, clean energy”.
