Proxima Fusion, a Germany-based company working on commercial fusion reactors, has announced plans to manufacture a key ingredient largely sourced from Asia. The startup will build a factory dedicated to producing high-temperature superconducting (HTS) tape—a material essential for creating the magnetic fields needed to contain fusion plasma. The investment for this facility: €140 million (around $162.6 million). The state of Lower Saxony will contribute €21 million, with the rest coming from private funding.
HTS tape recently emerged as a critical component in the fusion race. Unlike traditional superconductors, HTS can operate at higher temperatures while maintaining strong magnetic field generation, which allows fusion reactors to be smaller and more power-dense. Proxima plans to deploy 20,000 kilometers of tape in its demonstration reactor, and estimates its commercial machines will need twice that amount.
Today, most HTS tape is produced in China and Japan. As fusion companies globally gear up for reactors that will consume vast quantities of this material, the supply chain risk looms large—especially given geopolitical tensions or trade disruptions. Proxima’s move aims to reduce reliance on Asia and bring essential components closer to its reactor design process.
This factory follows Proxima’s major funding round earlier this year, when the firm raised €411 million. That surge in capital has bolstered its position among the best-funded fusion startups. By vertically integrating HTS tape production, Proxima hopes to lock in its supply of a scarce and strategically important material.
Why HTS Tape Matters Now
The foundation for many modern approaches to fusion power, HTS tape enables magnets to generate extreme magnetic fields without needing to be cooled to near absolute zero. That means simpler cooling systems, potentially lower operational costs, and more compact reactor geometries. In fusion and related fields—like power conversion and even next-gen data center cooling—this material is becoming indispensable.
But the current dominance of a few Asian manufacturers creates a chokepoint. Prices, delivery timelines, and quality vary; and any supply disruptions could slow global fusion development. Proxima’s strategy reflects a broader trend of cleantech firms trying to secure critical supply chains—whether for solar photovoltaics, batteries, or now fusion reactor infrastructure.
What’s Next
Building the factory will take time and scrutiny. Proxima will need to meet technical specifications for fusion-grade HTS tape—purity, consistency, and performance in high magnetic fields. Meanwhile, competition and collaboration in HTS supply are already heating up. Other firms are exploring HTS for applications beyond fusion, including boosting electric grids and data center efficiency.
The factory’s success could reshape where HTS tape is produced and who controls this piece of the fusion supply chain. For European fusion startups, it’s a signal that sourcing key materials locally is becoming a competitive advantage. It could also pressure Asian producers to scale or innovate to stay ahead.
Proxima Fusion’s €140 million factory for HTS tape is more than just a step toward self-sufficiency. It marks a turning point in fusion power’s supply-chain strategy. Watch closely whether the plant delivers the performance in volume that fusion engineers need—and how it changes the global balance of HTS tape production.
