Proxima Fusion to Build €140M Superconducting Tape Factory

The Germany-based fusion startup said it will use a mix of public and private funding to complete the factory, with the state of Lower Saxony contributing €21 million. Proxima recently raised €411 million in a funding round that positioned it among the best-funded fusion startups.

HTS tape is used to generate powerful magnetic fields that contain the plasma required to spark fusion reactions. The startup's demonstration plant will require 20,000 kilometers of HTS tape, while its commercial power plant will need twice that amount. Today, the vast majority of HTS tape is produced in China and Japan.

HTS tape emerged a little over a decade ago as a fundamental breakthrough enabling the current generation of fusion power startups. Because it can generate strong magnetic fields at relatively high temperatures, HTS tape allows for smaller and more efficient reactor designs. While fusion power is expected to consume a large portion of future HTS tape production, other companies — such as Veir — are also using the material to boost efficiency and power density in data centers.

Why This Matters

Fusion startups depend on HTS tape for reactor magnets; building domestic supply chains reduces geopolitical risk and cost volatility.
A successful factory could accelerate Proxima's timeline to commercial fusion power and lower barriers for the broader industry.
The investment signals growing confidence that fusion energy is moving from research toward deployment.

Background

Fusion energy aims to replicate the sun's nuclear reactions to generate near-limitless clean power. After decades of lab experiments, a new generation of private startups has emerged since the 2010s, driven by advances in magnets, materials, and computing. HTS tape is one of the key enabling technologies, allowing smaller, more powerful reactor designs. However, production capacity remains concentrated in a few countries, creating supply chain vulnerabilities for Western fusion developers.

Key Perspectives

Proxima Fusion: The startup views in-house HTS tape production as essential to securing its supply chain and controlling quality and cost for its reactor designs. State of Lower Saxony: The €21 million public contribution reflects regional government interest in positioning Lower Saxony as a hub for advanced manufacturing and clean energy technology. Asian suppliers (China, Japan): Current dominant producers of HTS tape may face new competition and potential market disruption as Western fusion startups scale their own production.

What to Watch

Construction timeline and commissioning date of the factory in Lower Saxony.
Volume and pricing of Proxima's HTS tape compared to established Asian suppliers.
Whether other fusion startups follow with similar vertical integration moves.

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