Proxima Fusion has announced plans to construct a €140 million ($162.6 million) facility dedicated to manufacturing fusion-grade high-temperature superconducting (HTS) tape. The Germany-based startup aims to secure a critical supply chain component for its reactor design while diversifying away from Asian dominance in the sector.
The new factory will be supported by a combination of public and private financing, including a €21 million contribution from the state of Lower Saxony. This investment follows a major funding milestone earlier this year, when Proxima raised €411 million, cementing its position as one of the best-funded companies in the fusion industry.
HTS tape is essential for generating the intense magnetic fields required to contain the plasma that drives fusion reactions. Proxima’s demonstration plant will require 20,000 kilometers of the material, while a future commercial power plant would need double that amount. Currently, the vast majority of HTS tape production is controlled by manufacturers in China and Japan.
The technology, which emerged as a key breakthrough for modern fusion startups roughly a decade ago, allows for smaller and more efficient reactor designs by generating strong magnetic fields at relatively high temperatures. While fusion energy is expected to consume a significant portion of global HTS output, other industries are also adopting the material; companies such as Veir are leveraging it to increase the efficiency and power density of data centers.
Love seeing fusion news that isn’t just about theoretical physics but actual manufacturing and supply chains.
I always thought China dominated the HTS tape market, so this shift is quite significant for global energy tech.
Smart move diversifying away from Asian manufacturers. But can they actually deliver on this €140M promise without delays?
Is twenty thousand kilometers really that much? I wonder if the material science can scale fast enough to meet that demand.
Finally, Europe taking real steps to secure its own supply chain for fusion. This is exactly the kind of independence we need.