Proxima Fusion bets €140M on a critical fusion ingredient dominated by Asian suppliers

Proxima Fusion is investing €140 million ($162.6 million) in the production of a crucial component for its fusion reactors: superconducting tape. The company announced on Wednesday its plans to construct a factory to manufacture high-temperature superconducting (HTS) tape specifically designed for its reactors. This development follows Proxima's recent €411 million fundraising round, which significantly improved its standing among the most well-funded fusion startups.

The German-based startup intends to finance the factory through a combination of public and private funding, with the state of Lower Saxony contributing €21 million. HTS tape will be employed to create strong magnetic fields necessary to contain the plasma essential for initiating fusion reactions. The demonstration plant will utilize 20,000 kilometers of HTS tape, while the commercial power plant will require twice that amount.

Currently, the majority of HTS tape is manufactured in China and Japan. HTS tape was developed approximately a decade ago, marking a significant milestone in enabling the modern fusion power startups. Due to its ability to generate powerful magnetic fields at relatively high temperatures, it facilitates the creation of smaller and more efficient reactor designs.

Although fusion power is projected to demand a substantial amount of HTS tape, other companies such as Veir are utilizing it to enhance the efficiency and power density of data centers.