The global fusion energy supply chain expanded significantly in 2025, with industry spending rising 24% year-on-year as fusion developers increase investment and suppliers strengthen their capabilities to support the path toward commercial fusion power.
According to The Fusion Industry Supply Chain 2026 report from the Fusion Industry Association (FIA), private fusion companies reported a combined supply chain spend of $538m in 2025. That figure is expected to increase by a further 27% in 2026, reaching an estimated $681m.
The report, unveiled at the inaugural Fusion Supply Chain Trade Show in New Mexico, draws on interviews and survey responses from 25 fusion companies and 67 suppliers, providing one of the most comprehensive assessments of the growing fusion energy supply chain.
Commenting on the significant industry investment, Andrew Holland, CEO of the FIA, said: “Our fourth annual report sees considerable progress in the relationship between fusion developers and their supply chain.
“We see signs of the ‘chicken and egg’ gridlock raised in previous reports easing, as supplier relationships improve and new and existing suppliers invest in scaling up capacity to meet the sector’s growing needs.
“Nonetheless, we are still in the engineering phase of the challenge, and while there is much to be optimistic about, demands on the supply chain will expand to serve commercial fusion machines. All players need to have an eye on those approaching tipping points.”
“The global energy crisis combined with the vast demands of AI mean rising pressure on the fusion industry to make limitless clean energy a reality. In large part, the winner of this race to fusion will not be the country that gets there first, but the one with the strongest, most integrated supply chain.
“Building that capability and capacity will need a truly collaborative effort between policymakers, investors, the supply chain and fusion companies.”
Strong growth signals greater industry confidence
The latest findings suggest that long-standing barriers between fusion developers and suppliers may be beginning to ease.
For years, the sector has faced a challenge often described as a “chicken and egg” problem: fusion companies require suppliers to invest in capacity and expertise, while suppliers have been reluctant to commit resources without clear long-term demand.
The new report indicates progress on both fronts.
70% of fusion companies said they had seen an increase in established suppliers entering the fusion market, while 25% reported that existing suppliers had successfully expanded their manufacturing capacity to meet growing industry requirements.
At the same time, supplier investment has accelerated. Three-quarters of suppliers surveyed said they invested in expanding their fusion-related capabilities during the past year.
Individual investments ranged from $30,000 to as much as $65m, highlighting the increasing confidence surrounding future opportunities in the fusion sector.
Supplier relationships show signs of improvement
Another positive trend identified in the report is the strengthening relationship between fusion companies and their suppliers.
Suppliers reported that both the frequency and quality of engagement with fusion developers improved during the past year.
More regular communication is helping suppliers better understand technical requirements and future opportunities, creating a stronger foundation for long-term collaboration.
However, significant challenges remain. Nearly seven in ten suppliers, representing 69% of respondents, said they still lack sufficient long-term visibility into future fusion demand.
This uncertainty continues to make strategic planning and investment decisions difficult for many businesses seeking to support the fusion energy supply chain.
Critical bottlenecks remain
Despite the growth in spending and investment, the report highlights several supply chain constraints that could slow progress toward commercial fusion deployment.
Among current challenges, respondents most frequently identified power systems and power components, cited by 48% of participants. Heat management technologies followed at 44%, while vacuum vessels and vacuum pumps were each identified by 32% as areas of concern.
Looking ahead, fusion fuel cycle systems emerged as one of the industry’s most pressing worries. Nearly half of fusion companies surveyed identified fuel cycle technologies as a major future bottleneck.
These systems are essential for producing and managing fusion fuels and will play a critical role in sustaining commercial-scale fusion operations.
To address the issue, 54% of fusion companies said they plan to collaborate with external suppliers on fuel cycle development, while the same proportion intends to pursue in-house development efforts.
Advanced materials also remain a concern, particularly first-wall materials capable of withstanding the extreme temperatures and conditions inside future fusion reactors.
Industry calls for coordinated action
The report concludes that continued growth of the fusion energy supply chain will depend on coordinated efforts across the sector.
Recommended priorities include developing a dedicated supplier ecosystem, accelerating industry standardisation, addressing funding gaps, and simplifying regulatory processes.
With spending continuing to rise and supplier engagement deepening, the findings suggest the fusion industry is making measurable progress toward building the industrial foundation needed to support commercial fusion energy in the years ahead.
