Proxima Fusion plans €140M HTS tape factory to cut Asia dependency
Original: Proxima Fusion bets €140M on a critical fusion ingredient dominated by Asian suppliers
Why This Matters
Vertical integration in HTS tape could define which fusion startups control their own timelines — and costs.
German fusion startup Proxima Fusion announced Wednesday a €140M ($162.6M) factory to produce high-temperature superconducting (HTS) tape, a core component for its reactor design. Lower Saxony will contribute €21M. The move targets a supply chain currently dominated by Chinese and Japanese manufacturers.
Proxima Fusion, the Germany-based fusion startup, is moving to secure its own supply of high-temperature superconducting (HTS) tape — the material that generates the powerful magnetic fields needed to contain plasma in its reactor design. The planned €140M factory will use a mix of private and public funding, with the state of Lower Saxony contributing €21M.
The announcement comes months after Proxima raised €411M in a funding round that placed it among the best-capitalized fusion startups globally. Scale is significant: Proxima's demonstration plant alone will require 20,000 kilometers of HTS tape, while its eventual commercial power plant will need double that amount.
HTS tape — which enables strong magnetic fields at relatively high temperatures — emerged roughly a decade ago as a key enabler for the current generation of compact fusion reactor designs. Right now, the vast majority of global HTS tape production is concentrated in China and Japan, making supply chain control a strategic priority. Beyond fusion, companies like Veir are deploying HTS tape to improve power density in data centers, adding further demand pressure to a limited market.