The nuclear fusion industry is poised for a landmark moment in , moving from a largely conceptual field to one with publicly traded companies. Two firms, General Fusion and TAE Technologies, are leading the charge, both pursuing different technological approaches to harnessing the power of fusion energy.
TAE Technologies, backed by Alphabet, is set to merge with Trump Media & Technology Group (DJT) in an all-stock transaction valued at over $6 billion. This deal, announced in , represents a significant bet on the potential of fusion energy to address growing energy demands, particularly those driven by artificial intelligence data centers. The combined entity will see shareholders of both companies owning approximately 50% of the new organization.
Meanwhile, General Fusion, a Canadian company focused exclusively on nuclear fusion, is pursuing a listing on the NASDAQ through a merger with Spring Valley Acquisition Corp. III, a special purpose acquisition company (SPAC). The transaction, announced on , values General Fusion at approximately $1 billion and is expected to be completed in mid-. If successful, it would become the world’s first publicly traded, pure-play nuclear fusion energy company.
The appeal of controllable nuclear fusion lies in its virtually limitless energy potential. Current estimates suggest that fusion fuel could sustain human energy needs for hundreds of millions of years, offering a long-term solution to climate change and energy security concerns. Investment in the sector has surged, increasing from $1.9 billion in to $9.7 billion in , with the number of relevant companies growing by 143% to 53.
A Different Path to Fusion: Magnetized Target Fusion
General Fusion’s approach to fusion, Magnetized Target Fusion (MTF), distinguishes it from more established methods like the Tokamak system. While Tokamaks, which use powerful magnetic fields to contain plasma, have been the dominant research path, they are characterized by high costs, engineering complexity, and a lengthy commercialization timeline. The International Thermonuclear Experimental Reactor (ITER), the world’s largest Tokamak project, exemplifies these challenges, having already exceeded €20 billion in investment with no firm completion date.
MTF, in contrast, aims to compress plasma using a mechanical piston within a liquid lithium liner, achieving fusion conditions with potentially lower system complexity, and costs. General Fusion’s Lawson Machine 26 (LM26), the world’s first commercial-scale MTF demonstration device, was designed, built, and commissioned in under two years. The LM26 is designed to achieve key milestones, including heating plasma to 1 keV (10 million degrees Celsius) and ultimately reaching the Lawson criterion – the point at which net energy is produced from the fusion reaction.
The company plans to use funds from the SPAC merger to further develop the LM26 and demonstrate the commercial viability of MTF technology, aiming to achieve scientific break-even – where the energy produced equals the energy input – in .
The SPAC Route to Public Markets
General Fusion’s decision to go public via a SPAC, rather than a traditional Initial Public Offering (IPO), reflects the unique challenges of financing fusion technology. SPACs offer a faster, more flexible route to market, and can be more accommodating to companies with long-term investment horizons and uncertain cash flows. The fusion industry, with its high capital requirements and extended timelines, doesn’t always align with the traditional IPO valuation system, which prioritizes profitability and comparable companies.
Spring Valley Acquisition Corp. III, the SPAC merging with General Fusion, is led by Chris Sorrells, who has a track record of successfully taking energy companies public. Spring Valley I previously merged with NuScale Power, creating the first publicly traded company focused on small modular reactors (SMRs). The platform has raised over $690 million through three IPOs and facilitated deals valued at over $450 million.
Assuming no redemptions, the proposed transaction values General Fusion at approximately $1 billion, including $105 million from a committed private investment in public equity (PIPE) and $230 million from Spring Valley’s trust account. General Fusion has previously raised over $440 million from investors including Jeff Bezos and Tobi Lutke.
Growing Global Investment in Fusion Energy
Major economies worldwide are increasingly recognizing nuclear fusion as a strategic energy source. Nearly 40 countries are currently involved in fusion projects, with over 160 facilities in operation, under construction, or planned. China, in particular, has made fusion a key component of its industrial planning, with projects like the Experimental Advanced Superconducting Tokamak (EAST) and the Compact Fusion Experimental Reactor Facility (BEST) progressing. China Fusion recently raised nearly 11.5 billion yuan in a new funding round.
Private investment is also accelerating. Sam Altman, CEO of OpenAI, has invested significantly in Helion Energy, and Bill Gates has backed Commonwealth Fusion Systems and Type One Energy. Type One Energy recently completed a Series B funding round of $87 million.
Industry observers caution that sustained investment and technological progress are crucial. The industry must avoid a “boom and bust” cycle, ensuring the development of a complete supply chain rather than a fleeting bubble. The coming years will be critical as these companies attempt to translate scientific advancements into commercially viable energy solutions.
