Fusion supply chain ramps up capacity, but key challenges remain

Around half of the world’s private fusion companies shared their supply chain spending data, reporting a total spend of $538 million and projecting this to jump a further 27% in 2026, to $681 million. 

The report was launched at The Fusion Supply Chain Trade Show in New Mexico – the first of its kind for fusion – and is based on interviews and surveys with 25 fusion companies and 67 fusion suppliers.

Improving fusion-supplier relationships 

The yearly report has long noted a “chicken and egg” gridlock, where fusion companies need serious supply chain capacity-building in the next decade, but struggle to give suppliers the long-term confidence to make these investments.

This report shows signs that the gridlock is easing, with 70% of fusion companies seeing an increase in established suppliers pivoting to fusion, and 25% observing existing suppliers successfully scaling up capacity to meet their needs. Meanwhile, 75% of suppliers made investments to expand fusion capacity in the last year, ranging from $30,000 to $65 million.

Suppliers also report that the frequency and substance of their conversations with fusion companies have notably improved over the last year. However, there is still work to do, as 69% continue to report a lack of long-term visibility of fusion needs, making planning and investment difficult.

Where are the supply chain bottlenecks?

Bottlenecks also remain in key areas, which could constrain progress. Many respondents face constraints right now in power systems and power components (48%), heat management technologies (44%), and vacuum vessels and pumps (both 32%).

A particular worry was fusion fuel cycle systems, named by 48% of fusion companies as a major future concern. Fuel cycle systems underpin the production of fusion fuels and will be essential to sustaining long-term operations at commercial scale. In response to these concerns, 54% of fusion companies plan to work with external suppliers to develop fusion fuel cycle technologies, and the same number plan to develop these in-house (some plan to use both approaches).

A final challenge of note is commercial-scale access to materials that can withstand extreme conditions, with first-wall materials named by 40% as a future concern.

The report concludes with a list of proposed solutions, including nurturing a dedicated fusion supplier ecosystem, accelerating standardization, closing funding gaps, and streamlining regulation. 

Andrew Holland, CEO of the FIA, commented:

“Our fourth annual report sees considerable progress in the relationship between fusion developers and their supply chain. We see signs of the “chicken and egg” gridlock raised in previous reports easing, as supplier relationships improve and new and existing suppliers invest in scaling up capacity to meet the sector’s growing needs. Nonetheless, we are still in the engineering phase of the challenge, and while there is much to be optimistic about, demands on the supply chain will expand to serve commercial fusion machines. All players need to have an eye on those approaching tipping points.”

“The global energy crisis combined with the vast demands of AI mean rising pressure on the fusion industry to make limitless clean energy a reality,” continues Holland. “In large part, the “winner” of this race to fusion will not be the country that gets there first, but the one with the strongest, most integrated supply chain. Building that capability and capacity will need a truly collaborative effort between policymakers, investors, the supply chain and fusion companies.”

Comments from key fusion stakeholders:

Marc Lachaise, Fusion for Energy (F4E) Director, commented:

“Fusion is moving from long-term promise to an emerging industrial reality, and the supply chain will be a decisive factor in scaling it. In Europe, the ecosystem developed through ITER over the past two decades has created an unparalleled base of industrial expertise, innovation, and skills. Building on this foundation will be essential to accelerate the transition from large-scale experiments to future fusion power plants.”

Dr. Akira Tsuneto, Deputy Director-General for Science, Technology, and Innovation Policy at the Cabinet Office of Japan, commented:

“This report offers timely insights into the opportunities and challenges of building a global fusion supply chain. Building on decades of fusion research and development, Japan possesses world-class manufacturing capabilities that can significantly impact the commercialization of fusion. The Japanese government will continue to support the advancement of these capabilities to foster international harmonization and collaboration across the global fusion ecosystem.”

Dr. Linda Horton, Acting Associate Director for Fusion Energy Sciences in the U.S. Department of Energy’s Office of Science, commented:

“The Department of Energy’s Fusion Science and Technology Roadmap highlights the importance of supply chains in advancing the Build-Innovate-Grow strategy and supporting fusion energy commercialization. FIA’s new report provides an updated assessment of the global fusion supply chain, outlining key opportunities and challenges. These insights will help inform the fusion community as it implements the Roadmap’s strategies.”

Tim Bestwick, Interim CEO of UKAEA, commented:

“The deployment of fusion, and the developments required to get there, require a capable supply chain. So, growth in the supply chain is essential to the future of fusion energy. UKAEA recognises that, as a national laboratory, it has an important role to play, and growing industry capability is one of the key objectives of the recent UK Fusion Strategy. This fourth FIA supply chain report is a very useful snapshot and analysis of the fusion supply chain, demonstrating welcome growth and giving useful insight into the challenges.”

The full report can be downloaded here.