Companies to Spend $7 Billion on First Nuclear Fusion Plants: Report

A revolutionary new source of energy is on the horizon, and the race is on to master it.

Nuclear fusion, the process where the nuclei of two light atoms slam to form a heavier nucleus and then massive amounts of energy, could potentially provide trillions of dollars in revenue for private companies and government labs alike.

According to a survey published by the Fusion Industry Association (FIA), these entities are set to spend a whopping $7 billion by the time their first fusion plants come online.

The Nuclear Fusion Energy Race Is On

The same survey tells us that the race to master fusion is being fought on two fronts: using either lasers or magnets. Both methods require extreme temperatures to achieve the necessary fusion, and the supply chain expenses are steep.

Last year alone, companies and labs spent $500 million on their supply chains. But as they move closer to building their first power plants, that cost is expected to skyrocket.

To achieve fusion, high-grade steel and concrete, superconducting wire, super magnets, lasers, and power supplies will all be required. The investment will be worth it in the end, though.

With a mature fusion industry estimated to be sometime between 2035 and 2050, according to surveyed developers, the potential for revenue is astronomical. The future of energy is here, and the fusion industry is poised to lead the charge.

The Latest Trend in Nuclear Fusion Research

In September 2021, the United States House Committee on Science, Space, and Technology passed a bill committing almost $2.8 billion for fusion energy-related projects and research.

The expenditures will be made over the next decade, with the United States contributing $1.3 billion to the International Thermonuclear Experimental Reactor (ITER).

ITER is a collaboration between 35 countries and aims to be the first project to achieve sustained nuclear fusion. The House Committee's investment will also fund additional projects and research in the field of fusion energy.

More recently, scientists at Lawrence Livermore National Laboratory in California announced a significant breakthrough in their efforts to study and harness fusion energy.

In December 2022, The New York Times reported that they successfully reproduced the power of the sun in a laboratory, which has caused excitement among the public and the scientific community alike.

How Companies Plan to Harness the Power of Fusion

Andrew Holland, the head of FIA, highlighted that the biggest challenge for companies is scaling up production.

"We want to make sure that supply chain companies are aware that fusion is coming, so they can make the necessary investments," he said.

However, Holland emphasized that geopolitical supply risk is not a concern, as critical parts and materials face no global supply shortfalls or come only from unstable countries.

While there is a global lack of tritium, a key element required to fire fusion plants, companies plan to breed tritium in the fusion plants using lithium. Holland estimated that a fusion plant would only need the amount of lithium in about four electric vehicles.

The potential of fusion technology lies in its ability to provide an alternative to traditional fossil fuels and contribute significantly to reducing global carbon emissions.

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