Proxima Fusion is planning a €140 million investment in Lower Saxony to manufacture high temperature superconducting tape, as the German fusion start-up moves to establish a stronger European supply chain for a material considered critical to future fusion technology.
The company, which has raised €650 million since its founding in 2023, is working towards developing fusion technology capable of generating commercial power. The planned investment is being supported by the German state, which has agreed to contribute €21 million towards the initial investment.
Building a European supply chain
High temperature superconducting tape is used to create powerful magnets capable of generating the magnetic fields needed to confine the extremely hot plasma involved in fusion reactions.
At present, only a small number of manufacturers in China and Japan produce the material at scale. Proxima’s planned investment would therefore add production capacity within Europe while supporting the development of a wider industrial base around the emerging fusion sector.
The company is in the final stages of discussions with a potential partner for the planned facility, with production expected to scale over the coming years.
A focus on supply chain resilience
For Proxima Fusion, establishing local production is closely linked to supply chain resilience. As fusion developers move closer to building demonstration machines, access to specialist materials and components is becoming an increasingly important consideration.
The company expects to operate its own demonstration machine by 2031, creating demand for superconducting materials that meet specific technical requirements.
The investment comes as governments and private companies look to develop domestic capabilities around technologies that could become important to future energy systems.
Fusion technology moves towards industrial scale
Fusion seeks to replicate the reaction that powers the sun by combining light atomic nuclei rather than splitting heavier atoms, as happens in conventional nuclear power generation.
While fusion has yet to demonstrate commercial power generation, investment in the sector has increased significantly. Proxima is currently Europe’s best funded fusion company, while US based companies have attracted a substantial share of global private investment.
The development of superconducting magnet technology also has potential applications beyond fusion, including other technologies requiring powerful magnetic fields.
For Europe, the development of a domestic supply chain could provide an additional industrial foundation as the fusion sector continues to develop, while giving companies greater access to specialist materials closer to home.
Source: Financial Times
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