Fusion energy drive entering a decisive phase
China's drive to develop controllable nuclear fusion is nearing a historic turning point, with related procurements totaling 10 billion yuan ($1.37 billion) set to be completed this year and early demonstrations of fusion-generated electricity likely to be seen around 2030, industry experts and company executives said on Sunday.
Their comments were made at the Fusion Energy Technology and Industry Conference 2026, which was hosted by the Anhui Province Fusion Industry Federation and Fusion Energy Technology, among others, and which ended on Saturday in Hefei, Anhui province. The presence of over 1,500 industry participants highlighted the growing convergence of science, manufacturing and capital in the area of fusion development.
Fusion occurs when two nuclei combine to form a new nucleus. Fusion energy seeks to replicate the sun's nuclear reactions to produce carbon-free electricity, effectively creating a safe, controllable "artificial sun" on Earth.
If successful, it could provide a near-limitless source of clean energy without carbon emissions while significantly lowering safety risks associated with conventional nuclear power.
A report presented by experts at the conference said that China's fusion energy development is entering a decisive phase, shifting from scientific experimentation to practical energy systems.
It emphasized that the Burning Plasma Experimental Superconducting Tokamak, or BEST, a major fusion device, aims to achieve net fusion power gain and demonstrate electricity generation by around 2030.
Song Yuntao, head of the Chinese Academy of Sciences' Institute of Plasma Physics, said: "Fusion is no longer just a physics experiment. It is becoming an energy engineering project. The key question now is how to build it, operate it and make it economically viable."
Currently, skepticism prevails over whether fusion can be commercialized at scale, particularly given its history of long development timelines.
Xu Qiang, chief analyst for power and environmental sectors at Guotai Haitong Securities, said: "China's advantage in fusion development is that it combines State-led research facilities with growing participation from private companies. That significantly improves the speed of technology iteration and commercialization."
In addition, China is advancing multiple fusion pathways at the same time, Xu emphasized.
Flagship facilities such as the Experimental Advanced Superconducting Tokamak, or EAST, in Hefei, have set world records by sustaining plasma temperatures above 100 million C for more than 1,000 seconds. Meanwhile, BEST is under construction in Hefei, to bridge the gap between laboratory experiments and future power plants, he said.
Rising confidence is reflected in capital flows. Guotai Haitong Securities estimated that fusion-related exchange-traded funds launched in 2025 brought 70 billion yuan of new capital into related sectors, reflecting rising expectations that fusion-related projects could translate into equipment orders in coming years.
Notably, a 2026 procurement plan released by the fusion industry alliance showed that more than 120 procurement projects are scheduled for this year, centered on tasks including the upgrade of EAST and BEST, with total funding approaching 10 billion yuan.
At the conference, Hefei Industry Investment Group unveiled a future fusion energy venture capital fund, with an initial size of 1 billion yuan. The fund will focus on key fusion technologies and core industrial segments, with a maximum lifespan of 15 years.
Jiang Xin, chairman of Hefei Industry Investment Group, said: "We are clearly prepared to invest with long-term patience. Based on technological progress and industry outcomes, we will launch follow-up funds to meet the phased investment needs of the fusion industry."
