US reorganises to build its fusion lead

1 December 2025

The U.S. Department of Energy has announced the creation of a new, high-level Office of Fusion, part of a broader organizational realignment aimed at accelerating America’s leadership in next-generation energy technologies. The Office will report directly to the Under Secretary for Science, an unprecedented elevation for fusion within the federal structure.

The reorganization elevates fusion from the research-focused Office of Science to its own standalone department while also eliminating renewable energy focused offices including the Office of Energy Efficiency and Renewable Energy (EERE) and the Office of Clean Energy Demonstrations (OCED). These eliminated offices collectively managed billions in clean energy funding supporting solar installations, electric vehicle charging infrastructure, and grid modernization. Fusion’s concurrent repositioning for commercial development signals a structural pivot away from the renewable energy programs that dominated federal energy policy over the past two decades.

Building on an Astonishing Leadership Position

The new Office arrives at a moment when American dominance in funding for private-sector fusion has reached extraordinary proportions. The United States commands over 80% of the total funding received by global private sector fusion (which we take to exclude China for reasons outlined below). Within the US itself, investment has coalesced around three regions: the North East – home to six fusion companies but dominated by Commonwealth Fusion Systems – with $3.1 billion, 41% of US total; the South West – which is overwhelmingly California and home to 12 fusion companies ranging from TAE to Pacific Fusion – with $1.86 billion, 24.6% of the total; and the North West – the fusion cluster in Washington State comprising four fusion companies led by Helion Energy – with $1.47 billion or 19.5%.. The North East US alone has attracted more fusion capital than all non-US countries combined, illustrating how American innovation hubs have become gravitational centers for global fusion investment.

Private Sector Fusion, Equity & Non-Dilutive Received, to end Nov 2025

The scale disparity with international competitors is stark. Europe’s entire private sector fusion funding landscape totals $1.15 billion, less than half what the North East region alone commands. Within the EU, Germany dominates with $570.8 million in fusion funding, accounting for 85.9% of the EU total. Outside the EU, the United Kingdom has attracted $488.3 million. Together these two countries account for 91.8% of total funding for European private fusion. Japan, at $270.1 million, and Canada at $372.1 million represent significant centres but remain dwarfed by most individual US regions.

The China Question

China represents a significant outlier in global fusion investment figures, with reported registered capital exceeding US totals. However, these numbers are not directly comparable to private sector fusion investment elsewhere. Chinese fusion development remains overwhelmingly state-led  and state directed, blurring the distinction between private capital and government support that defines funding in other markets. Moreover, China’s figures represent registered capital – pledged commitments, payable over 5 years and often kind, rather than received funding – making direct comparison with deployed private capital in Western markets problematic.  Nonetheless, Chinese investment is substantial and China is a clear competitor to the US private sector funding advantage.

Maintain & Extend

The new Office of Fusion will therefore be stewarding not just a promising technology, but an industrial sector where American private sector advantage is significant. The challenge ahead is less about catching up than about maintaining and extending this lead, building out the domestic supply chains, commercialization pathways, and technology transfer mechanisms that can convert research dominance into sustained industrial leadership.