Fusion industry attracts record annual funding of $4.48bn

The fusion sector has reported a total of $14.24bn since the annual survey began in 2021 and now employs over 16,000 people.

Now in its sixth year, the report aims to provide a comprehensive view of fusion sector growth and progress towards commercial fusion. This year, the FIA surveyed 56 fusion companies – up from 23 in 2021 – with six new entrants since last year, while three companies withdrew. 

This year’s figures include major funding rounds such as Commonwealth Fusion Systems (CFS), which raised an $863m Series B2 round in August 2025; Inertia Enterprises, which raised a $450m Series A in February 2026; Helion Energy, which raised $465m in June 2026; and Proxima Fusion, which raised $518m in July 2026.

Also included this year, for the first time, was incoming investment from companies announcing plans to join the public markets. Two companies, TAE Technologies and General Fusion, are preparing to join the Nasdaq exchange in 2026 and both received hundreds of millions of dollars in new investment as part of the process of going public. Their participation in the stock market demonstrates increasing confidence in commercial fusion, bringing new investment, along with a different type of scrutiny to the sector.

Siting and power purchase agreements

Market demand for fusion energy is growing, with this year’s report asking about siting and power purchase agreements (PPAs) for the first time. Six companies already have a siting agreement, with another four actively evaluating options. Five companies have a PPA, offtake agreement, or similar commercial commitment, with two more in discussions.

These agreements are being accelerated by AI’s energy demands – led by Microsoft’s PPA with Helion Energy in 2023 and Google’s deal with CFS in June 2025 – reducing market risk by ensuring both buyers and sellers are ready to go as soon as fusion is commercially viable.

Diverse approaches 

Fusion companies continue to focus on diverse technological approaches, including magnetic confinement (48%), inertial confinement (21%), magneto-inertial (14%), and several others. The geographical diversity of private fusion is also growing. While American-based companies dominate (28), including all five that have raised over $1 billion, they are joined by companies from 12 other nations, including four each in the UK, Germany, and China, and three each in India, France, and Japan.

Commercial fusion by the 2030s 

What hasn’t changed is the timeline, as the majority of fusion companies (71%) still expect the first fusion plant to deliver commercial electricity by the 2030s. But challenges remain. Despite the leap in annual investment, funding is still the biggest short-term challenge, named by two-thirds of respondents (67%), although fewer than last year (84%). When asked how much funding they would need to make a fusion power plant commercially viable, responses ranged from $100m to $10.9bn, with an average of $2.7bn, slightly higher than last year ($2.6bn).

Other significant short-term challenges named were power efficiency (64%) and neutron-resilient materials (64%). Longer term, the availability of neutron-resilient materials (57%) was the leading concern, followed by power efficiency (52%) and tritium self-sufficiency (52%).

Andrew Holland, CEO of the Fusion Industry Association, said:

“This year’s report shows how far fusion has come – from being defined by national labs and government R&D programs to being dominated by private fusion investment totalling over $4bn in just one year.

“This year’s record funding comes at a time when the imperative for fusion energy is greater than ever as energy security demands and environmental threats are joined by the need for huge amounts of clean energy to fuel the AI revolution.”

“I’m confident that the sector has the ability to deliver commercial fusion in the 2030s. The existence of siting agreements and power purchase agreements shows that commercial fusion energy is on the horizon.

“However, alongside private investment, fusion companies still need the support of governments to address common challenges including the availability of resilient materials and the fusion fuel cycle. The governments that update their programs and funding priorities to meet the sector’s needs today will be the ones to capitalize on this vital emerging industry.”

Read the Global Fusion Industry in 2026 Report here.