Proxima Fusion Plans €140M HTS Tape Factory for Fusion Reactors
Proxima Fusion plans a €140 million HTS tape factory, backed by Lower Saxony, to reduce reliance on suppliers concentrated in China and Japan for reactors.
Summary
On September 10, 2026, Germany based Proxima Fusion disclosed plans for a €140 million ($162.6 million) factory producing fusion grade high temperature superconducting, or HTS, tape, a critical component of its reactor design. The company will combine public and private financing, including €21 million from Lower Saxony. The commitment follows a €411 million funding round months earlier that made Proxima one of the best funded fusion startups.
HTS tape creates the powerful magnetic fields needed to confine plasma and initiate fusion. Proxima’s demonstration plant will require 20,000 kilometers, while a commercial power plant will need twice that, about 40,000 kilometers, making supply security critical because most production is in China and Japan. Emerging a little over a decade ago, HTS tape generates strong fields at relatively high temperatures, enabling smaller, more efficient reactors. Fusion is expected to absorb a large share of global output, while companies including Veir also use the material to improve data center efficiency and power density.
Positives
- €140 million will fund new fusion grade HTS tape manufacturing capacity for Proxima Fusion’s reactor program.
- €21 million from Lower Saxony provides public backing alongside planned private financing.
- €411 million raised months earlier placed Proxima Fusion among the best funded fusion startups.
- HTS tape enables smaller, more efficient reactors by generating strong magnetic fields at relatively high temperatures.
Risks & concerns
- Most HTS tape is produced in China and Japan, concentrating supply of a critical reactor component.
- 20,000 kilometers of tape are needed for Proxima’s demonstration plant, rising to about 40,000 kilometers for a commercial plant.
- Fusion is expected to consume a large share of HTS output, while companies such as Veir are also creating data center demand.
- €140 million in factory costs must be covered through a mix of public and private financing.