Everbright Securities has released a report indicating that the controlled nuclear fusion industry has reached a phase of capital expenditure expansion, characterized by many high-value segments having significant technological barriers. As project tenders progress, core companies within the industry chain are expected to benefit substantially. The firm is optimistic about companies directly involved in project construction and those that hold a leading position in the chain, as well as firms supplying high-value, high-tech barrier segments.
Key insights from Everbright Securities include: AI-driven restructuring of power consumption patterns underscores the strategic value of fusion energy, leading to a notable acceleration in industry financing. Nuclear fusion refers to the process where two lighter atomic nuclei combine to form a heavier atomic nucleus, releasing a large amount of energy. Fusion energy boasts advantages such as high energy density, relatively accessible raw materials, high safety, and zero carbon emissions, making it theoretically the most viable path to "ultimate energy."
According to McKinsey, with the surge in demand for cloud computing, cryptocurrencies, and AI, it is expected that by 2050, data centers will account for 5%-9% of global electricity consumption. AI giants like Sam Altman, co-founder of OpenAI, and companies such as Google and Alphabet have made forward-looking investments in the fusion industry chain. Google and Microsoft have also signed power purchase agreements with CFS and Helion, respectively. Data from Fusion Energy Base shows a significant rise in financing for the global fusion industry since 2021, with total equity financing reaching $9.7 billion by July 2025. According to FIA, about 76% of surveyed fusion companies expect to connect fusion power to the grid by 2035.
In China, multiple routes are being explored as the country steps into a year of intense bidding. China has undertaken numerous core component manufacturing tasks for the ITER project, transitioning from a participant to an industry leader. The “national team” led by the Chinese Academy of Sciences and the Southwest Institute of Nuclear Physics is focusing on relatively mature magnetic confinement tokamak routes, involving substantial investment; conversely, projects from private companies are showcasing diversification with more compact devices. Currently, various domestic fusion routes are in the feasibility verification stage, aiming for commercial power generation around 2040.
As of September 2025, it is estimated that total planned or ongoing investments in domestic fusion projects have exceeded 150 billion yuan, indicating that the industry has entered a phase of capital expenditure expansion. Looking ahead, the domestic fusion industry is expected to enter a construction phase for engineering experimental reactors around 2027, which will further enlarge the scale and investment of fusion devices, thus providing ongoing benefits to core suppliers within the industry chain.
High-value segments such as magnet systems, vacuum chambers, and power supply systems are poised to gain significantly from the accelerated capital expenditure in the industry. For instance, in the case of the ITER project, the cost proportions of the magnet systems, vacuum chambers and internal components, and power supply systems are 28%, 25%, and 15%, respectively. The magnet system is crucial to the magnetic confinement fusion device, with fusion power being proportional to the fourth power of the magnetic field strength, suggesting that high-temperature superconductors are likely to see extensive application in magnet systems. Furthermore, the demand for magnet systems in stellarator routes is increasing. The vacuum chamber and internal components serve as the first safety barrier for tokamak devices, and their design poses significant challenges due to the combined characteristics of dense welds and compact structures; the design of the chamber wall directly impacts the tokamak's lifespan. Additionally, the power supply system not only holds high value in tokamaks but also sees an increased proportion of value in alternative designs such as FRC and Z-pinch due to differences in device design.
Risk analysis includes potential slower-than-expected industry progress, risks related to industrial policies, and intensifying competition within the industry chain.