| Update
Figure 2. Global start-up landscape. Notes: Pacific Fusion funding of USD 900mn (2024) is trenched by milestones, current tranche unknown; funding of ENN could not be verified. Source: Arthur D. Little; Fusion Industry Association; Mergermarket
has now changed, from early-stage research to activities that seek to commercialise the technology, as part of efforts to decarbonise national electricity generation and ensure long term energy security. Japan published a national fusion strategy in 2023, followed by Germany, South Korea, the UK, and the US in 2024. China and Canada have not announced formal strategies but have created consortia to focus national efforts and activities. The German government’s March 2025 coalition contract included a commitment to further research on fusion technology, aiming to build the world’s first fusion reactor in Germany.
Governments are working closely with the private sector to accelerate progress towards commercial fusion plants, including leveraging of public–private collaborations, establishing
technology hubs, funding fusion infrastructure (demonstration plants and laser technology), developing and educating the workforce, and creating new supply chains. The US Department of Energy provided $46 million to eight private fusion firms in 2024, while in January 2025 the UK government pledged $500 million to support the development of UK fusion over the next two years.
In Germany, the state of Hesse signed a memorandum of understanding in March 2025 with Focused Energy and partners including RWE and Arthur D. Little to create a potential consortium. As part of this it has committed €20 million in public funding this year to support the initial stages of creating a pre-commercial laser fusion power plant on the former Biblis nuclear site.
The growth of private sector fusion Figure 2 provides an overview of fusion funding, by technology.
In 2024 private fusion companies closed successful funding rounds totalling more than $1 billion, including investments raised by Xcimer Energy, EX-Fusion, Focused Energy, and Marvel Fusion. In total, the sector saw more than $7.1 billion in investments by the middle of 2024, with a CAGR growth of 21% since 2022. Investments are continuing. So far in 2025 Marvel Fusion has secured a €113 million Series B funding round, from backers including EQT, EIC and power industry player Siemens Energy. In January 2025 Helion Energy closed a $425 million funding led by SoftBank Vision Fund 2, giving it a valuation of $5.4 billion. Type One Energy has announced plans for a 350 MW pilot plant in partnership with the Tennessee Valley Authority (TVA), while Italian energy company Eni is working with Commonwealth Fusion Systems to commercialise its technology.
Multiple companies and national governments have announced timelines for the commercial grid connection of fusion energy power plants, as shown in Figure 3. While these may prove overly optimistic, they do demonstrate the accelerated progress within the field.
Figure 3. Announced national timelines for fusion energy commercialisation Source: Arthur D. Little
Alongside governments, the sector has attracted investment from a range of major companies and high-profile individuals, such as Jeff Bezos, the founder of Amazon and Sam Altman of OpenAI. Some investors, such as venture capital funds, are typically early-stage funders of start-ups, but a number of others are more strategic. Cloud data centre operators such as Google and Amazon, who have committed to relying on clean energy 24/7 have invested in fusion start-ups to guarantee future energy security. Global energy companies, such as Equinor, Eni and Chevron have also
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