Why investments in fusion tech are ramping up

Fusion power technology has attracted a growth in funding in recent years, and optimism about its potential to serve as a viable solution to the global climate crisis is growing. 

Total investment has grown from USD $4.8 billion in 2022, to $6.21 billion in 2023 – and up to $7.1 billion in 2024. While fusion companies are securing both public and private funding, private investment has been particularly strong; with more than 35 private companies raising more than $2.4 billion between them. 

The fusion startups that have raised more than $300 million

On 14th September 2024, TechCrunch published this article detailing every fusion startup that has raised over $300 million. 

The list includes:

• General Fusion – a British Columbia-based company that has raised $440.53 million since its launch in 2002.
• Helion – founded in Washington, Helion has raised $607.64 million to date, as per PitchBook data.
• Zap Energy – also from Washington, this company has raised $327 million, with backers including Bill Gates’ Breakthrough Energy Ventures, Chevron Technology Ventures, and Bill Gates as an angel investor.
• TAE – founded as a spin-off from the University of California in 1998, TAE has raised a total of $1.32 billion. 

What’s behind the growth in fusion investments?

Investor confidence is key – and investors are increasingly optimistic about the future of fusion. 

In 2023, the third annual Global Fusion Industry Report from the Fusion Industry Association found that four companies believe they will deliver fusion power to the grid by 2030, and 19 companies estimate they’ll achieve this by 2035. Of all the companies surveyed, 89% expect that fusion will provide electricity to the grid by the end of the 2030s. And the US Department of Energy has suggested that fusion investment is about to become mainstream, as reported by Forbes. 

As well as investment growth, the number of private fusion companies is also on the rise – with 43 operating in 2023, compared with 27 in 2022. Globally, more than 4,000 people are now employed in private fusion companies – up by 34% since 2023. 

This optimism could help overcome the major challenges ahead

The technical challenges still facing fusion development shouldn’t be underestimated. But funding is a primary barrier for many companies; and investor optimism could break that barrier down, and provide new opportunities for companies to solve technical limitations – including power efficiency. 

The fusion industry holds the potential for clean energy supply in abundance. And technological advancements mean we’re closer to that becoming a reality than ever before. With continued funding growth, mainstream fusion rollout is becoming a tangible possibility – and we’re excited to watch this space over the next five years.