The United States and Europe risk falling behind China in the global competition to commercialize fusion energy, according to a new report published by MIT Technology Review. Despite leading in early research and private-sector innovation, Western nations may fail to capitalize on fusion’s transformative potential due to critical weaknesses in supply chains and industrial infrastructure.
Fusion energy, which replicates the process that powers the sun, promises a future of clean, virtually limitless electricity. However, the path to building commercial-scale fusion power plants is not solely a scientific challenge—it also depends heavily on large-scale manufacturing capabilities, specialized materials, and integrated industrial systems.
The report warns that while the US and Europe have made significant technological strides in fusion science, they have not invested adequately in the adjacent industries required to build and deploy fusion reactors. These include sectors such as thin-film processing for superconducting magnets, production of large-scale radiation-resistant metal-alloy structures, and high-performance power electronics—all areas where China is quickly establishing global leadership.
China’s progress is driven by coordinated industrial policy and public investment. It has leveraged its strengths in solar panel manufacturing, high-speed rail systems, and heavy industry to build capabilities that align with the needs of a future fusion energy economy. According to MIT Technology Review, China’s state-backed fusion consortium includes major players from the steel, electric grid, machine tooling, aerospace, and power generation sectors, positioning the country to rapidly scale up fusion technologies.
Although the United States still leads in private fusion investment and public funding, the report notes that China’s funding for fusion has surged in recent years. Without corresponding efforts to build out the industrial base, the West may struggle to match China’s speed in scaling production and reducing costs.
The report identifies six critical adjacent industries that will determine leadership in fusion deployment: thin-film processing, power electronics, large metal-alloy structures, cryogenic plants, light-isotope gas processing, and fusion-specific blanket technologies. Of these, China already leads in the first three. The US and Europe retain an edge in cryogenic cooling systems and have opportunities in the nascent fields of fusion fuel processing and blanket development. However, these advantages could erode without coordinated public-private investment and policy support.
MIT Technology Review emphasizes that Western governments must act now to secure future leadership in fusion energy. Policy recommendations include increased funding for industrial-scale demonstration projects, incentives for private investment, and strategic partnerships with allies like Japan and South Korea. The report also underscores the importance of stimulating domestic demand in overlapping sectors such as grid modernization and semiconductor manufacturing to make fusion supply chains economically viable ahead of reactor deployment.
