Companies worldwide are competing to build the first commercially viable nuclear fusion reactor. German startups are also in the race, backed by major corporations and private investors. However, the bulk of funding is flowing to the US and China.
The International Energy Agency (IEA) estimates the fusion energy sector could be worth over $350 billion by 2050. The technology promises safe, weather-independent, carbon-free electricity. Unlike nuclear fission, fusion carries a very low accident risk and produces no radioactive waste.
For decades, attention focused on large government projects like ITER. Thirty-five countries, including EU members, the US, Russia, and China, are collaborating on an experimental reactor in southern France. Since construction began in 2007, costs have skyrocketed and deadlines have been repeatedly delayed. Commissioning is now scheduled for 2034–36.
Meanwhile, private companies are proliferating. According to a report by the EU agency Fusion for Energy (F4E), 77 companies are working to commercialize fusion. Forty-two are based in the US, eight in China, and six in the UK. In Germany, Focused Energy, Marvel Fusion, Proxima Fusion, and Gauss Fusion have entered the market.
Private investments reached nearly €13 billion by end of 2025, with 53% going to US companies and about a third to Chinese firms. European companies received just over €700 million. German startups Marvel Fusion and Focused Energy attracted the largest sums among European firms.
Markus Roth, co-founder of Focused Energy, remains optimistic, citing Germany's strong ecosystem of research institutions and industry. The company uses laser-based fusion technology, successfully demonstrated in 2022 by US researchers. German energy giant RWE provided an additional €60 million in May 2026 and plans to build a prototype at a former nuclear plant site.
Roth expects a commercial fusion power plant by the early 2040s, but warns that billions of euros are needed and government support is essential. The German government has pledged over €2 billion in public investment for fusion during the current legislative term.
Source: www.dw.com