Global energy demand is projected to surge 80% by 2050. To meet this challenge, fusion—offering reliable, affordable, and abundant power—represents the most significant market opportunity of the 21st century.
The numbers are staggering. Ignition Research projects the fusion supply chain will become a trillion-dollar market by 2050, based on fusion meeting 20% of global energy demand. This would require deploying over 1,100 one-gigawatt-level fusion plants. That’s a conservative estimate, since fusion plants will likely produce between 400-500 gigawatts of energy, compared to today’s 1-1.3 gigawatt gas and nuclear facilities. This indicates we might need closer to 2,000 plants to meet the 20% target.
This immense demand signals a transformative opportunity, not just in energy generation but for the entire fusion supply chain. We are in a fierce competition to build this energy infrastructure. China is rapidly ramping up investment in fusion, and the choices we make now will determine whether America leads or follows.
FUSION: A 24/7 SOLUTION FOR THE NEW ENERGY ERA
Fusion represents more than an energy source; it’s a decisive path forward for U.S. technological leadership and energy independence. It’s also an opportunity to shape the evolution of global power.
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Fusion will fuel the future of quantum computing, advanced medicine, and American innovation. Unlike wind and solar, fusion’s output isn’t weather-dependent. It’s reliable, sustainable, and limitless. Always-on and carbon-free, fusion can stabilize the grid, electrify our military and transportation, and enable bold projects like Mars missions.
It’s also big business. According to the Fusion Industry Association’s 2025 report, at over $9.7B, fusion investment has grown by more than 5x since 2021. In the past year alone, fusion companies raised $2.64 billion–nearly double the previous year.
CHINA IS OUT-INVESTING THE U.S. 2:1
American leadership is far from assured. China poured $1.5 billion into fusion in 2024 alone. It launched a major state-owned fusion energy company with a planned $2.1 billion capital base by rapidly building infrastructure, cutting red tape, and scaling manufacturing. Meanwhile, U.S. funding has been stalled by budget constraints and slow policy, leaving us far behind—though this is beginning to change with our latest government appropriations.
Let’s be clear: The idea that we’re neck-and-neck is a myth. China has pulled ahead. If China delivers the first commercially viable fusion power plant, it will become the world’s dominant strategic energy partner, wielding immense influence over technology like AI and critical supply chains.
If history repeats itself, like we saw with solar and lithium-ion batteries, we would lose the opportunity to lead the fusion supply chain, costing us immensely in economic leadership and national security.
BUILDING AMERICA’S FUSION SUPPLY CHAIN
Fusion is a mission that calls for true American teamwork. Supply chain expansion is essential; current manufacturing lead times could exceed a century without rapid scaling.
It’s time to break free from our dependence on foreign suppliers. Decisive action is necessary to build a robust, transparent, American supply chain across critical minerals, advanced manufacturing, and precision components.
We need a government program with teeth that can fund fusion R&D, streamline regulations, incentivize American manufacturing, and reward real progress. Public-private partnerships are also essential, along with strong international alliances for AI-driven energy innovation—sharing research, aligning standards, and protecting proprietary technology.
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Further, investment in education and workforce development is vital to building fusion’s talent pipeline. Right now, the U.S. fusion workforce is just 4,000 strong, but is projected to triple by 2050.
FUSION’S CRITICAL TECH
Nearly every fusion reactor, grid upgrade, and next-gen defense system relies on consumable capacitor films. Today, 80% are sourced from China. That’s unacceptable. At Peak Nano, we’re building America’s first large-scale manufacturing capacity for these critical materials. Our technology delivers up to four times the energy storage and five times the lifespan of legacy films, and is built for the extreme demands of fusion and national defense.
But we’re far from the only U.S. innovator in this space. MetOx’s high-temperature superconductors deliver unparalleled power density and efficiency for fusion, and Canyon Magnet’s superconducting magnets enable plasma confinement in fusion reactors. General Atomics is creating devices and systems with innovative plasma control and diagnostics technologies. Commonwealth Fusion Systems (CFS), Helion, and Type One Energy are developing reactor designs and scalable technologies to bring us practical, commercial fusion power in the near term.
Fusion Energy Base is tracking a more comprehensive list. However, these are the kinds of innovations America needs to advance the energy transition, secure the fusion supply chain, and make commercial fusion practical, reliable, and affordable.
HOW U.S.-BASED SUPPLIERS CAN PREPARE
To lead this trillion-dollar market, U.S.-based suppliers need to prepare now to meet the industry’s demands without relying on foreign sources. This means raising funds, investing in advanced manufacturing capabilities, and establishing resilient, domestic supply chains for key components like high-performance capacitor films, superconducting magnets, and precision plasma control systems. Building a skilled workforce through targeted education and training will also be crucial to support fusion’s complex manufacturing and engineering challenges.
Collaboration across the industry is key. Suppliers need long-term certainty, and fusion companies need a mature supply chain to scale. Without coordinated action and investment, we risk bottlenecks that could stall progress just as commercial fusion is within reach.
For those who lead, there are also benefits to be gained in tangential markets—industrial, defense, and healthcare. For instance, the high-temperature magnets that will power fusion can also be used in data centers, and to extend and improve power lines. And companies like SHINE Technologies are using the current state of fusion to create medical isotopes that kill cancer cells.
THE FUSION FUTURE: LEAD OR FOLLOW
Fusion is no longer a distant dream. It’s here, the market is real, and the stakes couldn’t be higher. The race to lead fusion’s trillion-dollar supply chain will shape the global balance of power in the 21st century. The choice is clear: invest boldly, or watch as other nations set the standards and reap the rewards.