The global fusion supply chain is expanding rapidly to support the “business of fusion”, according to the latest report by the Fusion Industry Association (FIA), The Fusion Industry Supply Chain – 2025. The 35-page report, based on a survey of 22 private fusion companies and 57 fusion suppliers, found that supply chain spending by fusion companies grew by 73% to $434m in 2024, up from around $250m in 2023. FIA said it is projected to be much higher since not all fusion companies responded. Spending is expected to grow by another 25% this year.
The report explores the size and development of the global fusion supply chain, and the challenges it faces in scaling up to meet future demand. The past year saw huge progress in moving fusion from the ‘lab’ to industry, with leading fusion companies including Commonwealth Fusion Systems, Focused Energy, Helion, and Type One Energy announcing sites for pilot plants that will deliver energy to the grid.
The report found that 86% of fusion suppliers saw their business with the fusion industry increase last year. The 57 suppliers who responded reported investing a combined $230m on building new capacity (including people and machinery) to support this growth.
However, almost a third of fusion companies (31%) expressed concern about the availability of precision engineering and manufacturing suppliers to meet current commercial needs, rising to 63% for future needs. Every company surveyed named at least one key component or material where they had concerns about short- or long-term availability.
Overall, the biggest challenge remains the “chicken or egg” problem; suppliers need to know that there will be a market to invest in, but fusion companies struggle to commit long-term in advance of hitting timeline milestones. A third of suppliers (31%) are prepared to take the risk of growing capacity to support fusion, and almost half (46%) will do so if there is some risk-sharing. Nonetheless, 83% currently see business risks associated with selling to the fusion industry.
“Our report shows significant cause for optimism, with the fusion industry supporting a thriving network of suppliers, proactively investing in the capabilities to deliver commercial fusion,” comments Andrew Holland, CEO of the FIA. “However, with such a broad range of approaches to fusion in development, the sector still faces roadblocks in developing and sourcing the highly specialised components required to meet their timelines. There is a danger this could slow progress towards commercial fusion. For many suppliers, the core risk remains in investing in specialised development when long-term viability isn’t guaranteed.”
He continued: “Across the world we are seeing investment in the fusion industry and the supply chain increase as companies in the FIA get closer to delivering commercially available fusion energy. The challenge of building a strong fusion supply chain is manageable, if addressed now. Our recommendations provide a roadmap for success across three priorities: greater investment will give suppliers confidence to invest in building capacity through financial security; greater knowledge will give them the insight to make long term plans; and greater incentives will support suppliers as they grow to meet the needs of fusion developers. Tackling these areas will ensure the supply chain can scale to meet fusion’s demand, while also managing its own risks and rewards.”
The report concludes that solving the problems facing the industry “requires greater risk-sharing across all actors; fusion companies, suppliers, governments, universities, and major industrial players all have a role to play”. Some fusion suppliers are building cutting-edge capabilities that serve both fusion and other industries, providing a natural hedge and funded route to develop their technologies. “But this is not true of everyone, and scaling suppliers across the board to meet future fusion demands will need coordinated support.”
Governments in particular can play a catalytic role, as they have in other industries. “The semiconductor sector offers a clear precedent: public-private initiatives such as the US Department of Defense’s early investment in microchips helped scale up an entire ecosystem, ultimately enabling the modern technology economy. A similar, proactive approach to fusion supply chains could ensure that this emerging sector realises its transformative potential without unnecessary delays.”
The report says the fusion community, including developers, suppliers, and governments must continue working collaboratively to de-risk investment, improve market visibility, and build the workforce needed. “With the right support, we can build a robust, agile supply chain that will help deliver commercial fusion energy to the world.”
The 22 fusion companies responding to the survey included: Blue Laser Fusion, Commonwealth Fusion Systems, EX-Fusion, First Light Fusion, Gauss Fusion GmbH, HB11 Energy, Helical Fusion, Kyoto Fusioneering, LPPFusion, Marvel Fusion, NearStar Fusion, Novatron Fusion Group, OpenStar Technologies, Pacific Fusion, Pranos Fusion, Realta Fusion, SHINE Technologies, TAE Technologies, Thea Energy, Tokamak Energy, Type One Energy Group, and Zap Energy.
