The Fusion Industry Supply Chain: Insights from FIA's Latest Report

Last week the Fusion Industry Association (FIA) released its annual "Fusion Industry Supply Chain 2025" report (which can be downloaded here), revealing significant growth in supply chain spending and highlighting both opportunities and challenges as the fusion industry moves closer to commercialization. This comprehensive analysis provides valuable insights for businesses looking to participate in or understand the evolving fusion energy ecosystem.

Key Findings: An Industry Growing  with Momentum

The report, based on surveys from 22 private fusion companies and 57 suppliers, reveals several noteworthy trends:

• Dramatic spending increase: Fusion companies reported a total combined spend of over $434 million on their supply chain in 2024, representing a 73% increase from approximately $250 million in 2023

• Continued growth projected: Spending is anticipated to grow by another 25% in 2025, reaching approximately $543 million

• Suppliers investing in capacity: The 57 surveyed suppliers have invested over $230 million in building new capacity (including people and machinery) to support growth

• Significant business growth: 86% of suppliers saw increased business with the fusion industry over the last year

Source: Chart One, The Fusion Industry Supply Chain 2025 report

From Lab to Industry: Tangible Progress

The past year has marked substantial progress in the business of fusion as it transitions from research laboratories to industrial applications. Several leading companies have announced sites for pilot plants that will deliver energy to the grid:

• Commonwealth Fusion Systems

• Focused Energy

• Helion

• Type One Energy

These developments depend heavily on collaborations with supply chain partners and utility providers. Additionally, government-backed support for suppliers is gaining momentum, exemplified by an $80 million grant from the U.S. Department of Energy for MetOx International to establish an advanced HTS wire manufacturing facility.

The "Chicken or Egg" Challenge

Despite the positive momentum, the industry faces what the report describes as a "chicken or egg" dilemma:

• Suppliers are reluctant to invest in new capabilities without firm, long-term commitments

• Fusion companies, working to shorten milestone-based development cycles, struggle to provide those commitments

• 31% of fusion companies expressed concern about the availability of precision engineering and manufacturing suppliers for current needs

• This concern rises to 63% when considering future needs as the industry scales

This challenge is compounded by the diversity of fusion approaches, each with different component requirements. The report highlights that precision manufacturing skills for specialized fusion-specific components represent a more significant constraint than off-the-shelf components.

Supply Chain Perspectives

The supplier side of the equation reveals both optimism and caution:

• 31% of suppliers are prepared to take the risk of growing capacity to support fusion

• 46% will do so if there is some risk-sharing with fusion companies

• 83% see business risks associated with selling to the fusion industry

• 81% indicated that the lack of certainty made scaling up difficult

However, many suppliers reported that fusion represents a business line with high potential, and that developing capabilities for fusion also benefits their work in other cutting-edge industries.

Looking Forward: Proposed Solutions

The FIA report outlines several recommendations to address these challenges:

1. De-risk capacity building through structured public-private partnerships, targeted financial incentives, and reduction of trade barriers

2. Support long-term planning by improving market visibility, standardizing components where possible, and developing harmonized regulatory frameworks

3. Build a skilled workforce through expanded education programs, leveraging national laboratories as training hubs, and creating centers of excellence for key skills

The Road Ahead

While challenges remain, the report remains optimistic about the future of the fusion supply chain. Unlike some renewable energy technologies that require vast global supply chains, fusion's power density means the industry will need hundreds of power plants globally, not millions of units.

The report concludes that with the right support across industry, government, and academia, the fusion sector can build a robust supply chain capable of delivering commercial fusion energy within the anticipated timeframes of the 2030s.

For businesses interested in this growing sector, the report provides valuable insights into where opportunities exist and what challenges must be addressed to participate successfully in the fusion energy revolution.