According to the Zhitong Finance APP, China Galaxy Securities has released a research report stating that China's nuclear fusion industry is showing a vigorous development trend, with significant progress in technological breakthroughs, corporate financing, and policy support. International nuclear fusion research has made breakthrough progress, accelerating the global commercialization process of nuclear fusion, with 2025 being a major year for international reactor construction. Controlled nuclear fusion is one of the important ways to solve human energy problems, with a wide-ranging industrial chain and intensive technological demands, covering upstream raw material supply, midstream equipment manufacturing and research and development, as well as downstream application services. The firm suggests focusing on equipment and material targets that deeply participate in core projects from the perspectives of industry development stage, high value, certainty, high elasticity, and AI empowerment.

The main viewpoints of China Galaxy Securities are as follows:

China's nuclear fusion industry is showing a vigorous development trend, with significant progress in technological breakthroughs, corporate financing, and policy support

The number of participants in China's controlled nuclear fusion is rapidly increasing. By the end of 2024, the number of members in the controlled nuclear fusion innovation consortium and fusion industry alliance will significantly increase, with new companies like SZHL entering the nuclear fusion sector. Technological breakthroughs have been achieved in fusion projects, with EAST achieving long-pulse high-parameter plasma operation, HL-3 starting new experiments and applying digital twin systems, and the "Chixiao" device being completed, with breakthroughs in high-temperature superconductivity research of nickel oxide under normal pressure. Commercial nuclear fusion companies are actively financing, with China National Nuclear Power and ZZEPC holding shares in China Fusion Energy, and companies like Fuxinli and Fusion New Energy receiving large amounts of financing, with capital from multiple industries actively laying out. National and local policies strongly support the construction of the fusion energy industry as a key area, with places like Shanghai and Anhui successively introducing policies to promote high-quality development of the fusion industry. The domestic landmark project BEST will gradually release tenders in 2025, accelerating industrial progress. 2025 will be a major year for domestic project tenders.

International nuclear fusion research has made breakthrough progress, with major countries increasing policy support, financing scale continuously expanding, and the global commercialization process of nuclear fusion accelerating

In terms of project progress, the American company CFS has confirmed an investment of billions of dollars to build the world's first commercial nuclear fusion power plant, ARC, in Virginia, and announced that the construction of its nuclear fusion device SPARC has entered an in-depth stage. Significant progress has been made in plasma confinement and fusion power output in devices such as the DIII-D and NIF in the U.S., the JT-60SA in Japan, and the JET in the UK. In terms of policy support, the U.S. Department of Energy has invested over $280 million in the "Nuclear Fusion Innovation Research Engine" project, the UK government has announced an investment of £410 million to accelerate nuclear fusion energy construction, and South Korea plans to invest 12 trillion won to promote the construction of nuclear fusion demonstration reactors through its "Nuclear Fusion Energy Acceleration Strategy." In terms of corporate financing, companies like Xcimer Energy, Type One Energy, Helion Energy in the U.S., and Tokamak Energy in Europe have received large amounts of financing, with the global financing scale of nuclear fusion companies continuously expanding, and capital flocking to the nuclear fusion field. 2025 will be a major year for international reactor construction.

Controlled nuclear fusion is one of the important ways to solve human energy problems, with a wide-ranging industrial chain and intensive technological demands, covering upstream raw material supply, midstream equipment manufacturing and research and development, as well as downstream application services Controlled nuclear fusion is a type of thermonuclear reaction that requires meeting the Lawson criterion for ignition. The commercial application requires a fusion energy gain factor Q greater than 30. The main methods of achieving this include magnetic confinement, inertial confinement, and gravitational confinement, with magnetic confinement currently being an effective approach for developing fusion energy. The Tokamak device is a typical representative of magnetic confinement. Its industrial chain mainly consists of upstream materials, midstream superconducting magnets, first wall-related structures, vacuum modules, and downstream power plant operations. The upstream includes land and equipment construction, nuclear materials, and structural materials; the midstream involves the research and manufacturing of various key equipment such as vacuum systems and superconducting magnets; the downstream primarily focuses on fusion power plant operations and related equipment applications. Nuclear fusion power generation has advantages such as continuous stability and almost no greenhouse gas emissions.

Risk Warning

Risks of controlled nuclear fusion technology and industrialization progress falling short of expectations; risks of adverse impacts on the nuclear power industry development due to global nuclear safety incidents; risks of calculation deviations caused by report assumptions; risks of key companies' financing progress not meeting expectations