Proxima Fusion and the German state of Lower Saxony have signed a Memorandum of Understanding (MoU) to develop a large-scale factory for high-temperature superconducting (HTS) tape. The project could receive about €140 million in investment during its first two phases, including €21 million from Lower Saxony.
The planned facility would produce HTS tape for fusion magnets and other high-performance technologies. Proxima Fusion says the factory could help reduce Europe’s dependence on overseas suppliers and create a new domestic supply chain for a key fusion technology.
HTS tape is an important material for building powerful superconducting magnets. These magnets are particularly important for stellarator fusion machines, where they create the magnetic fields needed to hold extremely hot plasma in place.
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The planned factory would be located in Lower Saxony and is expected to be the first large-scale facility of its kind in Germany and Europe. The first two phases are planned to run through the end of 2029.
Proxima Fusion is developing stellarator-based fusion technology through its Alpha demonstrator and planned Stellaris power plant. The company estimates that Alpha will require around 20,000 kilometres of HTS tape, while Stellaris could require another 40,000 kilometres.
At present, large-scale HTS tape production is concentrated mainly in Asia. Building production capacity in Europe would give Proxima and other European companies a closer source of the material and could help develop local manufacturing expertise.
HTS tape is a specialised metallic tape that becomes superconducting at relatively high temperatures. In this state, it can carry very large electrical currents with extremely low electrical resistance.
That property allows engineers to build strong magnets in a relatively compact form. In a stellarator, these magnets create and control the magnetic field that confines the plasma needed for fusion reactions.
More powerful and compact magnets could help engineers build smaller fusion systems. However, the planned factory itself would manufacture the superconducting material; it would not produce fusion power.
The proposed facility would not be limited to the fusion industry. HTS materials can also be used in high-performance electricity grids, medical imaging and treatment systems, advanced propulsion and other applications that require powerful magnetic fields.
For Lower Saxony, the project could also bring new manufacturing activity and highly skilled jobs. The state says the facility could help build expertise in materials, production, quality control and other technologies that could be useful across several industries.
Proxima Fusion is also in discussions with international technology partners about bringing established HTS manufacturing knowledge and production capabilities to Lower Saxony.
Proxima Fusion plans to finance the first two phases through an equal mix of public and private funding. Lower Saxony plans to contribute €21 million, which would account for just under 30% of the proposed public funding.
The MoU does not mean construction or full-scale production has already begun. The agreement provides a framework for evaluating possible sites, developing the funding structure, supporting permits and building partnerships with companies, municipalities and research institutions.
The proposed factory could become an important part of Europe’s emerging fusion industry. A reliable European source of HTS tape would help reduce dependence on overseas manufacturing as companies move from fusion research toward larger demonstration machines and, eventually, commercial power plants.
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The project also highlights a broader challenge for fusion energy. Building a working reactor is only part of the task. Companies also need large-scale supplies of specialised materials, magnets, electronics and other components.
Proxima Fusion says more than 50 companies across Europe are already working through its Alpha Alliance to develop a fusion supply chain. If the HTS facility goes ahead, it could provide another important piece of that industrial network.
For now, the project remains in the development stage. Its eventual impact will depend on investment, site selection, technology partnerships and the successful scale-up of HTS tape production.
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