Fusion Supply Chain Spending Almost Doubles in 2024, According to Fusion Industry Association
PRESS RELEASE
Fusion supply chain spending almost doubles in 2024, according to Fusion Industry Association
- Fusion companies spent over $434 million on their supply chain in 2024
- Supply chain spending is anticipated to grow by another 25% this year
- But 81% of fusion suppliers said that lack of certainty still makes scaling up difficult
3 June 2025: The global fusion supply chain is expanding rapidly to support the “business of fusion”, according to a new report by the Fusion Industry Association published today. The Fusion Industry Supply Chain – 2025 edition found that supply chain spending by fusion companies grew by 73% to $434 million in 2024, from around $250 million in 2023*. It is projected to be much higher since not all fusion companies responded. Spending is expected to grow by another 25% this year.
Based on a survey of 22 private fusion companies and 57 fusion suppliers, 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.
These developments depend on collaborations with suppliers. This growing demand is reflected in the report, which 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 $230 million on building new capacity (including people and machinery) to support this growth.
Yet, concerns remain amongst fusion companies and suppliers regarding challenges in meeting the increasing demand. Nearly 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 specialized 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 specialized development when long-term viability isn’t guaranteed.”
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.
“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,” continues Holland. “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 full report can be downloaded here.
ENDS
*Long-term followers of our reports may note a discrepancy with last year’s report. We have been alerted to the fact that in the past two years’ surveys, one company included spend commitments, resulting in an inflated aggregated figure. This has been historically corrected for this year and the correct figures are presented in this release and in the report.
About the research
The FIA asked its member companies to share their current supply chain spend, structure, and predicted future needs, as well as their views on the challenges. The results are derived from 22 responses from private fusion companies including some of the world’s most highly funded and advanced companies. In addition, 57 affiliate (supply chain) members shared their views on challenges and opportunities in working with the fusion industry.
About The Fusion Industry Association (FIA)
The FIA is the leading voice of the global fusion industry and a central point for coordination across the fusion community to support accelerated growth.
June 3, 2025
