Global fusion energy investment has seen a surge, with an influx of $2.64bn since July 2024 marking the largest annual increase since 2022, as reported by Reuters citing a report by Fusion Industry Association.
The financial influx was noted across key regions such as the US, the European Union (EU), Japan, China and the UK.
The Fusion Industry Association, based in Washington, US, reported that total funding for the 53 surveyed fusion companies now stands at close to $9.77bn – a five-fold increase since 2021.
2025’s figures show a 178% jump from just over $900m raised in 2024.
Companies within the sector emphasise the necessity for increased funding to transition fusion energy into a commercially viable industry.
Significant challenges in achieving commercialisation involve reducing the energy requirements to initiate reactions, ensuring that these reactions can proceed in a continuous manner and developing efficient systems for energy transfer.
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By GlobalDataFIA CEO Andrew Holland stated: “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.”
Notably absent from these figures is public funding for state-led fusion projects, an area in which China is at the forefront globally.
Investment has been drawn from conventional fossil fuel companies, including Chevron and Shell’s venture arms, Siemens Energy and Nucor — the US’s largest steel producer.
This increase in financial backing coincides with rising power demands driven by AI applications and data centre growth.
Google recently announced its agreement to purchase electricity from Commonwealth Fusion Systems’ anticipated plant in Virginia that aims to begin operations by the early 2030s.
Despite this positive trend in financing, securing additional funds remains challenging according to 83% of survey respondents.
Fusion enterprises estimate they will need between $3m and $12.5bn more, with a median figure of $700m, to launch their first pilot plants successfully.
The collective amount deemed necessary by industry players totals approximately $77bn — an eightfold leap compared to current investor commitments — and could be reduced through expected consolidation within the industry.
