BUSINESS

China Launches National Fusion Energy Firm With $1.6 Billion Investment From SOEs

Published: Jul. 24, 2025 4:46 a.m. GMT+8

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The launching ceremony of China Fusion Energy Co. Ltd. in Shanghai on July 22, 2025.

China officially launched a national fusion energy company on Tuesday, backed by investment from leading state-owned nuclear and energy firms — a move seen as a significant step toward the commercialization of fusion power, long considered the “holy grail” of clean energy.

China Fusion Energy Co. Ltd., a wholly owned subsidiary of China National Nuclear Corp. (CNNC), held its inauguration ceremony in Shanghai. The new venture aims to lead the development of controllable nuclear fusion technology as part of China’s long-term strategic energy plan.

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China launched China Fusion Energy Co. Ltd. with 15 billion yuan ($2.1 billion) in capital, led by CNNC (50.35% stake) and major state firms to commercialize nuclear fusion.
The company aims to advance fusion from experimental reactors to commercial plants, following recent national breakthroughs like the China Circulation-3 achieving key plasma records.
Despite strong investment and government backing, commercial fusion energy in China is acknowledged to remain decades away due to technical and financial challenges.

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Who’s Who

China Fusion Energy Co. Ltd.: China Fusion Energy Co. Ltd. is a newly launched national fusion energy company, a wholly-owned subsidiary of China National Nuclear Corp. (CNNC). Inaugurated in Shanghai, it aims to lead the development of controllable nuclear fusion technology for China's long-term energy plan. The company has attracted significant investment, totaling approximately 11.5 billion yuan ($1.6 billion), raising its registered capital to 15 billion yuan. It is headed by Liu Ye and plans a three-stage development from experimental reactors to commercial fusion power stations.

China National Nuclear Corp. (CNNC): China National Nuclear Corp. (CNNC) is a state-owned nuclear firm that has launched China Fusion Energy Co. Ltd. CNNC is the majority shareholder of this new venture, retaining a 50.35% controlling stake. CNNC is contributing both cash and intellectual property to the new company, which aims to develop controllable nuclear fusion technology. Liu Ye, Party Secretary of CNNC’s Southwestern Institute of Physics, heads China Fusion Energy.

China National Nuclear Power Co. Ltd.: China National Nuclear Power Co. Ltd. is a publicly listed company. It announced an equity stake in the new China Fusion Energy Co. Ltd., aligning with China's nuclear development roadmap. It invested in the new entity, holding a 6.65% stake. The company cautioned investors about the high technical barriers and long development cycles in achieving large-scale fusion deployment.

Kunlun Capital: Kunlun Capital, an investment firm under PetroChina, is a significant investor in China Fusion Energy Co. Ltd., holding a 20% stake. They contributed over 3 billion yuan, making them the second-largest shareholder. Kunlun Capital has a history of investing in fusion ventures, including Fusion New Energy (Anhui) Co. Ltd.

Shanghai Future Industries Fund: Shanghai Future Industries Fund is a state-owned fusion energy firm that contributed to the establishment of China Fusion Energy Co. Ltd. This new national company, focused on developing controllable nuclear fusion technology, attracted approximately 11.5 billion yuan ($1.6 billion) in investment. Shanghai Future Industries Fund, along with the National Green Development Fund, jointly holds a 15% stake in China Fusion Energy Co. Ltd.

National Green Development Fund: The National Green Development Fund is an investor in China Fusion Energy Co. Ltd., a newly launched national fusion energy company. It will jointly hold a 15% stake in the company with Shanghai Fusion, contributing to the roughly 11.5 billion yuan investment aimed at commercializing fusion power.

Zhejiang Zheneng Electric Power Co. Ltd.: Zhejiang Zheneng Electric Power Co. Ltd. is an investor in China Fusion Energy Co. Ltd., holding a 5% stake. The utility company recognizes the strategic importance of fusion for China's energy security and climate goals. While it invests in conventional nuclear projects, it also acknowledges the high technical barriers and long development cycles associated with commercial fusion.

CNNC’s Southwestern Institute of Physics: CNNC’s Southwestern Institute of Physics is one of China's oldest and most prestigious fusion research institutions, located in Chengdu. It leads China's "artificial sun" project, China Circulation-3. Its Party Secretary, Liu Ye, also heads the newly formed China Fusion Energy Co. Ltd.

PetroChina: PetroChina, through its investment firm Kunlun Capital, is a key backer of China Fusion Energy Co. Ltd., contributing over 3 billion yuan for a 20% stake, making it the second-largest shareholder. PetroChina has a history of investing in fusion ventures and also holds a stake in Fusion New Energy (Anhui) Co. Ltd.

Fusion New Energy (Anhui) Co. Ltd.: Fusion New Energy (Anhui) Co. Ltd. is a fusion energy company under the Chinese Academy of Sciences' Institute of Plasma Physics. PetroChina, through its investment firm Kunlun Capital, holds a stake in this company. It focuses on commercializing fusion technologies.

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What Happened When

September 2020：: President Xi Jinping announced China's dual climate goals, which provided momentum for the fusion sector.

Spring 2025：: At a national energy briefing, Zhang Xing (National Energy Administration) announced increased government support for fourth-generation nuclear power, small modular reactors, and fusion R&D.

May 2025：: China’s 'artificial sun' project, China Circulation-3, set new national records: 1 million amperes of plasma current and sustained ion temperatures of 100 million degrees Celsius.