CICC: Domestic Production of Core Fusion Components Advances, Focus on Key Window for Industrial Deployment

Stock News11-07

Recent reports indicate that China has included nuclear fusion as a key focus for its 15th Five-Year Plan and future industrial development. Meanwhile, countries such as the U.S., Japan, and the U.K. are accelerating implementation through specialized legislation and funding, forming a comprehensive support system from policy design to industrial practice.

Taking the ITER project as an example, the core value of nuclear fusion devices lies in four major systems: magnets, blankets, vacuum chambers, and divertors. Among these, the magnet system, internal vessel components, structural elements, and vacuum chambers account for the highest cost shares at 28%, 17%, 14%, and 8%, respectively. In the short term, the advancement of domestic production for core components will drive industry momentum, making it crucial to monitor the key window for industrial deployment.

**Key Insights from CICC:** 1. **Global Momentum for Clean Nuclear Technology** Nuclear fusion offers advantages such as environmental friendliness, abundant resources, high energy density, and self-limiting reaction mechanisms. China’s recent inclusion of fusion in its long-term industrial strategy, alongside legislative and financial support from the U.S., Japan, and the U.K., highlights a global push toward establishing a full-chain support framework.

2. **Diverse Global Fusion Demonstration Projects** According to the *World Fusion Outlook 2024*, tokamak devices account for 50% of global fusion projects, with alternative approaches (stellarators, laser-based systems, etc.) also gaining traction. Europe leads with the ITER-centered international collaboration, while China pursues independent R&D, and North America relies on private-sector initiatives. FIA data shows that global commercial fusion funding reached $9.77 billion by mid-2025, marking the highest annual growth in three years.

3. **Transition from Lab to Industrial Scale** The industry is entering a critical phase of engineering-scale deployment. Cost control and interdisciplinary integration (e.g., AI-driven plasma control) will ultimately determine fusion’s role in the global energy mix.

**Recommended Stocks:** Key players in the nuclear fusion supply chain include: - Sufa Technology Industry Co., Ltd. (000777.SZ) - Lanzhou LS Heavy Equipment Co., Ltd. (603169.SH) - Hangzhou Boomy Intelligent Technology Co., Ltd. (688290.SH) - Western Superconducting Technologies Co., Ltd. (688122.SH) - Sichuan Kexin Mechanical and Electrical Equipment Co., Ltd. (300092.SZ) as a secondary watch.

**Risk Factors:** Delays in fusion project progress or postponed ignition timelines may pose challenges.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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