Around 140 million euros are earmarked for the first two project phases through the end of 2029 – the factory is intended to close a critical gap in the European supply chain for fusion power plants. In doing so, Proxima Fusion is attempting to make a key component of its stellarator technology available in Europe, which has previously been manufactured at an industrial scale primarily in Asia.
To this end, the company and the State of Lower Saxony signed a Memorandum of Understanding (MoU) in Hanover on September 9, 2026. The agreement includes, among other things, the evaluation of potential locations, the development of a milestone-based funding structure, support with permitting procedures, and the establishment of collaborations with companies, municipalities, and research institutions.
60,000 Kilometers of HTS Tape for Alpha and Stellaris
Proxima Fusion’s demand figures demonstrate the scale that the planned production must achieve. For the planned Alpha demonstrator, the Munich startup anticipates needing around 20,000 kilometers of HTS tape. An additional 40,000 kilometers are expected to be required for the subsequent Stellaris fusion power plant.
This could make Proxima itself the anchor customer for the new factory. Long-term guaranteed off-take volumes are intended to help ramp up production, build manufacturing expertise, and reduce the cost per meter of HTS tape.
HTS stands for “High-Temperature Superconductor”. This specialized tape becomes superconducting at comparatively high temperatures and can then transport electrical current with virtually no resistance losses. This enables the manufacture of particularly powerful and compact electromagnets.
For stellarators, such magnets are a key component. Their magnetic fields confine and control the extremely hot plasma. More powerful HTS magnets can therefore help design fusion facilities more compactly, ultimately improving the conditions for more economically viable fusion power plants in the future.
Lower Saxony aims to contribute 21 million euros
The approximately 140 million euro investment volume for the first two project phases is to be funded equally by private capital and public funds. The state of Lower Saxony plans to contribute 21 million euros. This would see the state cover nearly 30 percent of the planned public funding share.
A specific location within Lower Saxony has not yet been determined. Additional financing and grant agreements also still need to be finalized. Proxima is also in talks with several international technology partners who could bring existing know-how and production capacity for HTS tape to Lower Saxony.
Proxima Fusion aims to reduce dependence on Asian suppliers
Behind the investment lies an industrial policy consideration. HTS tape is currently manufactured on an industrial scale primarily in Asia. Proxima itself signed a supply contract in 2025 with Tokyo-based manufacturer Faraday Factory Japan.
European production is intended to reduce this dependency. For Proxima, this is not just about supplying individual research projects, but about building an industrial supply chain for stellarators.
According to Proxima, more than 50 European companies are already working on such an infrastructure within the so-called Alpha Alliance. Having its own HTS production would add a previously missing upstream manufacturing stage.
“HTS tape is one of the key technologies for rapidly scaling fusion industrially. Alpha and Stellaris create the demand to build up this production expertise locally. Lower Saxony brings the industrial base, energy expertise, and political determination needed to transform a dependency into a lasting, strategic strength for Germany and Europe as an industrial location.”
says Francesco Sciortino, Co-founder and CEO of Proxima Fusion.
From Munich fusion startup to European industrial project
The planned factory in Lower Saxony is part of an increasingly cross-state industrial strategy by Proxima Fusion. While Lower Saxony could play a key role in the production of HTS tape in the future, the startup’s central development projects remain in Bavaria.
Proxima is planning its Alpha demonstrator in the vicinity of the Max Planck Institute for Plasma Physics near Garching. In February 2026, the company also signed a letter of intent with the Free State of Bavaria, RWE, and the Max Planck Institute for Plasma Physics, which includes the planned commercial Stellaris power plant at the former Gundremmingen nuclear power plant site.
With HTS production, the focus is expanding from the development of a fusion reactor to its industrial prerequisites. Proxima is not only building its own stellarator technology, but is also concurrently working to establish the necessary European supply chain infrastructure.
HTS technology could also serve power grids and medical technology
The planned factory’s economic viability does not depend solely on nuclear fusion. High-temperature superconductors and the high-field magnets manufactured from them can also be used in other fields.
Proxima points to high-capacity power grids, medical imaging and treatment, as well as advanced propulsion systems as potential areas of application. In the long run, a European HTS industry could thus serve a market that extends well beyond the Munich startup’s planned stellarators.
This is precisely where the project’s industrial-policy significance lies. If scaling succeeds, Germany would gain not only new supply capacity for the fusion sector, but also manufacturing expertise for a technology with multiple potential target markets.
