Fusion supply chain sees growth in business
Global supply chain spending by fusion companies increased by 73% in 2024 to USD434 million, compared with about USD250 million in 2023, according to the Fusion Industry Association. Spending is projected to grow by another 25% this year to USD543 million.
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Based on a survey of 22 private fusion companies and 57 fusion suppliers, the report - titled Fusion Industry Supply Chain: 2025 edition - explores the size and development of the global fusion supply chain, and the challenges it faces in scaling up to meet future demand.
According to the report, 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 power plants.
The Fusion Industry Association (FIA) found that 86% of fusion suppliers saw their business with the fusion industry increase in 2024. The 57 suppliers who responded reported investing a combined USD230 million on building new capacity (including people and machinery) to support this growth.
However, concerns remain amongst fusion companies and suppliers regarding challenges in meeting the increasing demand. Nearly one-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.
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. One-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.
The report provides a list of proposed solutions from the FIA for overcoming current scaling challenges, focused on derisking capacity building, supporting long-term planning, and broadening the industry workforce.
"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," said FIA CEO Andrew Holland. "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 added: "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: "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 Fusion Industry Association is a US-headquartered international non-profit independent trade association for the private nuclear fusion industry. It was founded in 2018.
