Fusion hits a record $4.48bn funding year as China keeps building

Four stories landed on the nuclear desk this month that, taken together, sketch the same underlying picture: capital and political will are moving toward nuclear at a pace not seen in a generation - across fission and fusion, East and West, established fleets and next-generation designs.

Fusion raises a record $4.48bn in a single year

The global fusion industry raised $4.48bn in the twelve months to July 2026 - a record annual figure - according to the Fusion Industry Association's Global Fusion Industry in 2026 report, published 13 July. The total cumulative figure since the FIA began its annual survey in 2021 now stands at $14.24bn, and the sector employs more than 16,000 people.

The 2026 annual figure is 69% higher than the prior year, a jump driven by several large rounds closing in quick succession. Commonwealth Fusion Systems raised an $863m Series B2 in August 2025; Inertia Enterprises closed a $450m Series A in February 2026; Helion Energy raised $465m in June 2026; and Proxima Fusion raised $518m in July 2026.

The FIA surveyed 56 fusion companies for its 2026 report, up from 23 when the survey launched in 2021. General Fusion and TAE Technologies are also preparing to join the Nasdaq exchange in 2026, and both received hundreds of millions of dollars in new investment as part of the process of going public. The FIA notes this is the first year it has included incoming investment from companies preparing to enter public markets.

On commercial readiness, the picture is more cautious. Six companies already have a siting agreement, with another four actively evaluating options; five have a power purchase agreement, offtake agreement, or similar commercial commitment, with two more in discussions. Microsoft signed a PPA with Helion Energy in 2023, while Google signed an agreement with Commonwealth Fusion Systems last year.

71% of fusion companies surveyed still expect the first commercial fusion plant to deliver electricity in the 2030s. The challenges have not changed either: despite the leap in annual investment, funding remains the biggest short-term challenge, named by two-thirds of respondents (67%). Power efficiency and neutron-resilient materials each drew 64% of respondents as near-term concerns.

The UK publishes its fusion strategy - and backs it with £2.5bn

The FIA's record year did not emerge in a policy vacuum. On 16 March 2026, the UK's Department for Energy Security and Net Zero published A New Energy Revolution - The UK's Plan for Delivering Fusion Energy, backed by a £2.5bn investment in fusion research and development secured at the Spending Review.

The strategy sets out how UK Fusion Energy Ltd will act as the national fusion systems integrator, bringing together industrial partners, research expertise, and advanced digital and AI capabilities to deliver the STEP Fusion plant at West Burton in Nottinghamshire. The government is also investing £45m to fund what it describes as the world's most powerful fusion-dedicated AI supercomputer, developed in collaboration between UKAEA and the University of Cambridge.

The strategy targets supporting over 10,000 UK jobs by 2030. As a signal of confidence, the strategy is accompanied by UKAEA and Eni agreeing to establish a joint venture to advance fusion energy technologies.

China: 36 reactors under construction, half the world's pipeline

While fusion attracts the headlines, the largest single shift in global nuclear capacity is happening in conventional fission - and almost entirely in China.

From 2016 to 2024, China's nuclear generation capacity increased 76% (24 GW), according to U.S. Energy Information Administration data. The pace has not slowed. China added a further 1.1 GW in 2025 and 2.2 GW through May 2026, and now has 36 reactors under construction, accounting for more than 49% of total world nuclear construction, according to the IAEA's Power Reactor Information System.

China's 36 reactors under construction across 19 sites will add approximately 38.9 GW of additional capacity, per IAEA PRIS data cited by the EIA.

Nuclear reactors with a combined capacity of 78 GW are currently under construction in 15 countries globally, with half of that capacity in China; total installed capacity in the country is expected to reach 100 GW by around 2030, according to the IEA's Global Energy Review 2026.

Speed is a structural advantage. The average build time for a nuclear power plant in China between 2012 and 2021 was six years, against a global average of about nine years, and more recent reporting indicates Chinese firms have built reactors in five to seven years. Reactors are built in batches of six to ten to take advantage of economies of scale.

China is also moving into small modular reactors. China is building its first SMR, the Linglong-1, a domestically designed 100 MWe pressurized water reactor intended for power generation, water desalination, and district heating. China's 15th Five-Year Plan (2026-2030), approved in March 2026, targets 110 GWe of nuclear capacity by 2030.

Studsvik acquires Kärnfull Next to enter SMR project development

The European SMR market is also consolidating. On 11 May 2026, Studsvik AB completed its acquisition of Swedish SMR project developer Kärnfull Next AB, a transaction first announced on 9 March 2026.

The acquisition expands Studsvik's capabilities beyond its traditional technical service offering and strengthens the company's position within the emerging market for new nuclear development in Sweden and Europe; Kärnfull Next develops sites and early-stage projects for SMRs in the Nordic region and has established itself as one of Sweden's most active private-sector players in new nuclear development.

The initial enterprise value is approximately €6.5m, consisting of €3m in cash and €3.5m in newly issued Studsvik shares, with potential additional payments of up to €16m linked to project milestones.

The deal is backed by a significant policy tailwind. The Swedish government has introduced financing mechanisms worth SEK 220 billion (€20.6bn) to support new nuclear development, creating one of the most attractive environments globally for advanced reactor projects. Kärnfull Next is working with reactor companies and utilities including GE Vernova, developer of the BWRX-300 SMR, and Finnish state energy company Fortum to develop and package ready-to-build projects.

Rosatom closes out its VVER accident-tolerant fuel pilot

The fourth story is quieter but technically significant. Rosatom has completed a pilot operation programme for accident-tolerant fuel (ATF) at Unit 2 of the Rostov nuclear power station in southern Russia; three test fuel assemblies containing advanced fuel rods were loaded into the VVER-1000 reactor in 2021 and have now completed three standard 18-month fuel cycles.

Testing included three TVS-2M fuel assemblies containing 12 experimental fuel rods each - six with cladding made of chromium-nickel alloy and six with standard zirconium alloy cladding with chromium coating. The irradiated fuel will now be transferred to the Research Institute of Atomic Reactors in Dimitrovgrad for post-irradiation examination.

Rosatom's fuel division TVEL concluded that the optimal option for industrial implementation is cladding made of classic zirconium alloy with chromium coating - "the solution adopted by all leading global nuclear fuel manufacturers."

ATF development matters beyond Russia. All major global fuel manufacturers have been working to commercialise ATF technology, with testing programmes at commercial plants over the past decade. The completion of Rosatom's three-cycle pilot is a qualification milestone that moves the technology closer to large-scale industrial deployment in the VVER fleet - which spans reactors in more than a dozen countries.

What to watch

The four stories above share a common thread: the gap between announcement and delivery is narrowing. Fusion is signing PPAs and filing for stock listings. China is commissioning reactors faster than most countries can permit them. Sweden is writing nine-figure cheques for SMR infrastructure. And Rosatom has closed out a five-year fuel qualification programme.

The outstanding question - particularly for fusion - is whether the 2030s commercial timeline holds once developers move from conceptual design reports and siting agreements to actual construction permits and grid connection contracts. That is the next set of milestones to watch.

Machine-drafted · Editor-reviewed