According to a research report by CICC, the 15th Five-Year Plan has officially included controlled nuclear fusion in China's future industrial system, marking its upgrade from frontier scientific exploration to a strategic technological priority. As a clean baseload energy source, it not only supports decarbonization in high-energy-consuming industries but also enables cross-sector applications. Breakthroughs across the supply chain—from core materials and critical equipment to integrated design—are steadily advancing technological readiness, laying the groundwork for commercialization. Key investment opportunities include superconducting cables, lasers, and sensing/control systems.
CICC highlights the following drivers for fusion energy commercialization: 1) Growing demand for stable, clean, and high-density energy positions controlled fusion as pivotal for energy transition. 2) Critical milestones (e.g., NIF’s net energy gain, high-temperature superconducting magnets) are accelerating engineering validation. 3) Scaling capital inflows (45 private fusion firms globally by 2024) is fast-tracking lab-to-market progress. 4) Supportive policies worldwide, from legislation to funding, are clearing development pathways.
The supply chain is advancing via multi-technology approaches. Upstream cost-efficiency gains in superconductors and specialty materials, coupled with industry collaboration, strengthen commercialization prospects. Technologically, magnetic confinement (notably tokamaks like ITER, targeting 2030–35 deployment) dominates, while China’s CFETR and BEST projects showcase engineering advantages. Inertial confinement (led by NIF) seeks efficiency improvements, and innovative paths like Z-pinch and FRC show promise. Global fusion investments surged fivefold from $1.9B in 2021 to ~$9.77B by 2025.
Investment priorities in mid-upstream segments: 1) **Laser systems for inertial confinement ignition**: Semiconductor laser chips must achieve higher power, efficiency, and beam quality to meet fusion demands, where pulse performance dictates compression and energy gain. 2) **Superconducting cables for energy transmission**: As the "artery" of tokamaks, these cables enable high-field plasma confinement and drive compact, cost-effective reactor designs. Their performance critically influences magnetic strength and overall efficiency. 3) **Monitoring/control systems**: The "neural core" of fusion devices, these systems ensure plasma precision and operational safety. Rising operational parameters demand real-time, AI-enhanced solutions. China’s September 2025 policy blueprint prioritizes AI-driven fusion control R&D, targeting global leadership by 2030.
Risks include technological maturity, commercialization timelines, regulatory adaptation, market competition, and extended ROI cycles.
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