The race to build the world's first commercial fusion power plant has received a development as Munich-based Proxima Fusion signed memoranda of understanding with two Japanese industrial partners. The agreements with Fujikura and Kyoto Fusioneering were concluded in Tokyo on Oct. 28. The signing ceremony was attended by Japanese Prime Minister Sanae Takaichi and German Chancellor Friedrich Merz, who was visiting Japan to strengthen trade ties. Ann Mettler, president of Brussels-based clean-energy think tank Catalyse Europe and a former vice president of Breakthrough Energy, noted that advancing this technology represents a strategic imperative for Europe. She stated that Europe operates as a resource-poor geography heavily dependent on China, describing the global competition for technological supremacy as a zero-sum game while calling fusion a silver bullet that promises abundant, clean, and limitless energy.
Fusion energy seeks to replicate how the sun generates power by utilizing super-heated plasma to fuse two light atomic nuclei into one heavier nucleus, which releases vast quantities of energy. Two primary approaches exist in the field: one relies on high-powered lasers, while the other employs powerful magnets to confine plasma. Proxima is developing a magnetic device known as a stellarator, which is engineered to hold plasma in place across extended periods. The agreement with Kyoto Fusioneering expands existing collaborative work on next-generation gyrotrons, which are devices that generate high-power microwaves utilized to heat the plasma.
Proxima's agreement with the 141-year-old firm Fujikura involves exploring plans for industrial-scale manufacturing in Germany of high-temperature superconducting, or HTS, tape. This specialized metallic tape operates as superconducting at relatively high temperatures and conducts electrical current with virtually no resistive losses. The tape gets wound into coils to construct powerful magnets that confine and control the heated plasma inside the stellarator. Francesco Sciortino, CEO and co-founder of Proxima Fusion, noted that Fujikura, which employs over 50,000 people globally, holds a leadership position in manufacturing high-temperature superconductors after building its reputation in optical fibers. He added that the company views this tape as having the potential to become the next optical fiber.
Proxima is currently studying plans to establish a manufacturing facility in Lower Saxony, with hopes of producing approximately 5,000 kilometers, or 3,100 miles, of tape annually by the year 2030. The facility, estimated to cost 140 million euro ($160 million), is intended to be financed partly through proceeds from a $468 million funding round completed in July, which valued Proxima at $2.7 billion and included backers such as Alphabet-owned Google. Proxima anticipates requiring roughly 20,000 kilometers, or 12,400 miles, of the tape for its Alpha fusion demonstrator and an additional 40,000 kilometers, or 24,900 miles, for its planned Stellaris fusion power station.
Sciortino emphasized that establishing production of the tape within Germany remains crucial for helping Europe cultivate the expertise and supply chains necessary to translate its leadership in fusion research into actual industrial capability. Mettler pointed out that Europe has historically struggled with this transition from scientific leadership into commercial euros, noting that while Europe boasts proud industrial giants, disruptors tend to achieve greater success in frontier technologies. Mettler stated that if Europe manages to develop this technology first, it will secure a massive advantage, with building the underlying supply chain serving as the key component.
Sciortino expressed confidence that Proxima will emerge as the first company to activate a pilot plant, while stressing that profitability will depend on keeping the plant's operation as simple as possible. He explained that designs, manufacturing, and plant operations can incorporate complexity, but the operational phase requires simplicity, with the company aiming for a net energy gain during the early 2030s. Proxima faces well-heeled competitors, including U.S.-based Commonwealth Fusion Systems, which is likewise backed by Google, along with Helion Energy and Canada's General Fusion. Additional participants include state-backed Chinese entities, most notably China Fusion Energy Co., alongside Tokyo-based Helical Fusion, which leads Japan's domestic push. Mettler noted that the supply chain for fusion energy must be constructed years in advance, cautioning that frontier technologies cannot simply be activated like a switch.
