US Fusion Energy Race Heats Up as Breakthroughs Spur Investment

Experts call for a national strategy to maintain America's lead in fusion technology development

Published on Feb. 22, 2026

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The United States is in a global race to develop commercial fusion energy, a potentially abundant and clean power source that could revolutionize industries from AI to space travel. Recent breakthroughs in fusion research and a surge in private investment have put the US in a strong position, but experts warn that without a coordinated national strategy, the country risks losing its lead to China, Europe, and other competitors pouring billions into fusion development.

Why it matters

Fusion energy could provide the abundant, dispatchable power needed to fuel the AI revolution and drive advances in manufacturing, space systems, chemicals, and national defense. Maintaining US leadership in this critical technology will be essential for economic and strategic competitiveness in the coming decades.

The details

Over the past few years, US fusion companies and national labs have made significant scientific breakthroughs, including achieving 'ignition' where fusion reactions produce more energy than is put in. This, combined with advances in superconducting magnets, high-powered lasers, and AI-powered materials and plasma physics, has led to a surge in private investment, with fusion startups raising $7.1 billion in the last four years. However, isolated breakthroughs alone are not enough - a coherent national strategy is needed to ensure the US can capitalize on its lead.

  • In late 2025, the Trump administration overhauled the Department of Energy to focus more on fusion, AI, quantum, and critical minerals.
  • Last year, the Trump Media & Technology Group announced a merger with fusion company TAE Technologies.
  • Just last month, Canadian fusion company General Fusion announced plans to go public.

The players

Lawrence Livermore National Laboratory

A US Department of Energy research facility that has led the way in fusion research, including achieving the milestone of 'ignition' where fusion reactions produce more energy than is put in.

TAE Technologies

A fusion company based in Irvine, California that recently merged with the Trump Media & Technology Group.

General Fusion

A Canadian fusion company that recently announced plans to go public.

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What they’re saying

“We are in the middle of a long-term geopolitical race: China, Europe and the U.K. have been pouring billions into fusion development. If the U.S. wants fusion energy to power our economy in the next decades and beyond, now is the time to double down.”

— Mike Campbell, Professor of Practice, UC San Diego; President, Fusion Power Associates (twincities.com)

“Fusion is not just particularly well-suited to the energy-hungry AI revolution, but its promise of affordable, abundant, 24/7 dispatchable energy that is modular and localized will determine who leads in advanced manufacturing, space systems, chemicals and national defense.”

— Farhat Beg, Professor, UC San Diego; Vice President, Fusion Power Associates (twincities.com)

What’s next

The Department of Energy has launched several pilot programs to support fusion research and development, but experts say the scale of funding and collaboration needs to be significantly expanded to maintain America's lead in this critical technology.

The takeaway

The race to develop commercial fusion energy is a high-stakes geopolitical competition, and the US must act with urgency to implement a coherent national strategy that diversifies funding, streamlines permitting, and strengthens public-private partnerships in order to capitalize on its scientific and technological advantages.