Fusion energy is advancing at an unprecedented pace—and the supply chain must evolve even faster to keep up. This isn’t just a logistics challenge. Every component of a fusion reactor—HTS magnets, vacuum systems, power electronics, and more—is pushing the boundaries of what’s possible.
To maintain this pace, the Fusion Industry Association (FIA) recently held a Supply Chain Workshop at Rutgers University with over 100 attendees from across the ecosystem gathering to tackle this challenge head-on. The event brought together fusion developers, suppliers, public institutions, policymakers, and investors to explore how to scale the supply chain in step with the industry’s rapid growth.
Enabling Supplier Readiness
Fusion companies and suppliers must co-develop next-gen components that meet the unique demands of fusion—but often require applications in adjacent industries.
Transparent demand signals and shared roadmaps can help suppliers make confident capital investments.
Standardizing requirements across the industry would reduce redundant certifications and streamline production.
Building Collaborative Ecosystems
Regional innovation hubs that connect startups, suppliers, labs, and universities can accelerate both product development and commercialization.
New initiatives like New Jersey’s “Plasma Forge”—a joint effort between NJEDA, SOSV, and PPPL—are already demonstrating how public-private partnerships can drive innovation across sectors like semiconductors and advanced manufacturing.
Reducing Risk for Suppliers
Public-private partnerships and demonstration hardware programs can lower capital risk and foster co-development.
Targeted incentives—such as tax credits, low-interest loans, and cost-share grants—can empower suppliers to scale with confidence.
Developing a Skilled Workforce
Fusion needs a modern talent pipeline. That means investing in university programs, vocational training, and apprenticeships in fields like cryogenics, nuclear engineering, and power electronics.
Re-skilling professionals from adjacent industries (aerospace, semiconductors, fission) is a proven strategy that fusion can adopt.
One of the most frequently discussed challenges at the workshop was the classic “chicken or egg” dilemma: fusion companies operate on short-term, milestone-driven funding cycles, while suppliers must make long-term investments to develop the capabilities and capacity needed to support them.
This mismatch creates a fundamental tension. Suppliers are hesitant to invest in new tooling, facilities, or R&D without clear, long-term commitments. Meanwhile, fusion companies can’t make those commitments without first securing the next round of funding or hitting technical milestones. The result is a stalemate that slows progress on both sides.
To break this cycle, the workshop identified several approaches to align incentives and timelines:
Transparent demand signals—such as shared roadmaps and component forecasts—can give suppliers the confidence to invest ahead of demand.
Standardized specifications across the industry can reduce redundant development and certification efforts, making it easier for suppliers to serve multiple customers.
Public-private partnerships and government-backed incentives can de-risk early investments and help bridge the gap between short-term funding and long-term infrastructure needs.
Ultimately, solving this dilemma is about building trust and visibility across the ecosystem. When suppliers and fusion developers can plan together, they can grow together.
During a panel with NJ State Senators Joseph Pennacchio and Andrew Zwicker, several policy initiatives were discussed – but all states would benefit from similar initiatives:
New Jersey is actively pursuing a fusion power plant to boost local economic development.
Land reuse proposals aim to reduce capital costs for new facilities.
Fusion is being positioned as a Class 1 clean energy source.
A formal Request for Information (RFI) is helping policymakers better understand industry needs.
As a panelist in the “Supplier Perspective on the Supply Chain” breakout group, I joined a diverse group of suppliers—from HTS manufacturers to lithium separator developers—to discuss key challenges. One major barrier: most suppliers still don’t understand fusion. This knowledge gap makes it difficult to engage, quote, or collaborate effectively; the proprietary technologies behind each fusion development company exacerbates this issue.
At Peak Nano, we address this through educational outreach and transparent communication, and ensuring our technologies are adaptable to the needs of the power industry. But the industry as a whole must do more to demystify fusion and make it accessible to the broader supply chain.