Proxima Fusion's Japan Deal: Germany's Fusion Race Just Got Serious

Jan de Vries · 2026-10-28

You know that feeling when a startup does something that makes you sit up and take notice? That's Proxima Fusion right now. The Munich-based stellarator fusion company just signed a Memorandum of Understanding (MoU) in Japan, and it's a big deal for Germany's fusion ambitions. The MoU was inked during Chancellor Merz's visit to Japan with Kyoto Fusioneering, a Japanese fusion tech provider. This partnership is all about building the industrial supply chain needed to make commercial fusion power plants a reality. It's not just a handshake—it's a strategic move to combine Germany's stellarator engineering prowess with Japan's decades of fusion engineering experience. ### Why This Matters for the Fusion Race Dr. Francesco Sciortino, co-founder and CEO of Proxima Fusion, put it perfectly: "The global race to fusion will be won in factories and supply chains." He's not wrong. Japan has spent years building world-class fusion capabilities, while Germany leads in stellarator engineering and industrialisation. Together, they're building a new industry that makes both countries more secure. And this isn't happening in a vacuum. The German government and the European Union have been strong backers of fusion, and that support is paying off. As Sciortino said, "Japanese partners choosing to work with Germany is a direct result of the strong backing fusion enjoys from the German government and the European Union." ### Proxima's Meteoric Rise If you've been following Proxima Fusion, you know they've been on a tear. Let's recap their funding journey: - 2023: €7 million pre-Seed round (about $7.6 million) - 2024: €20 million Seed round (about $21.7 million) - June 2025: €130 million Series A (about $141 million), extended by €15 million (about $16.3 million) in September - July 2026: €411 million (about $446 million) more, bringing total funding and public grants to over €650 million (about $705 million) That's a lot of cash, and it's fueling the development of their Alpha demonstration stellarator. The company, founded in 2023 as a spin-out from the Max Planck Institute for Plasma Physics, is working on commercial fusion power plants based on the QI-HTS stellarator concept. Alpha is a net-energy fusion demonstrator targeted for the early 2030s, paving the way for Stellaris, the world's first commercial stellarator fusion power plant later that decade. ### The Japanese Partner: Kyoto Fusioneering On the other side of the MoU is Kyoto Fusioneering, a premier fusion technology and integrated systems developer. They deliver technologies and engineering services for plasma heating, tritium fuel cycle, and tritium breeding blanket and thermal cycle systems—essential for advanced fusion programs worldwide, regardless of the confinement approach. Kiyoshi Seko, Representative Director, President and COO of Kyoto Fusioneering, shared his excitement: "Germany is approaching fusion not only as a future source of energy but as a pillar of its High-Tech Agenda to build national prosperity through advanced technology. Through our cooperation with Proxima Fusion, we will bring our state-of-the-art plasma heating technologies to one of the most ambitious stellarator programs in the world and help turn fusion into a real industry in Germany." Under the MoU, the two companies will expand joint work on next-generation gyrotrons for plasma heating and fuel cycle technologies. Kyoto Fusioneering will also contribute its expertise to the commercialization and industrial deployment of fusion energy in Germany, including within the national Fusion Hubs. ### The Bigger Picture: European Fusion Investment Proxima's success comes amid a wave of investment in European fusion technologies. For instance, fellow Munich-based Marvel Fusion raised a €50 million (about $54 million) Series B extension in 2025, and Bristol-based Astral Systems secured a €26 million (about $28 million) Series A in 2026. Together with Proxima's latest round, these deals represent €487 million (about $528 million) in investment across 2025–2026. This reflects the varied European approach to fusion power—and it's clear that investors are betting big on fusion's future. So, what's the takeaway? Proxima Fusion's Japan deal is more than just a press release. It's a signal that Germany is serious about leading the global fusion race, and with partners like Kyoto Fusioneering, they might just pull it off. Keep an eye on this space—the next few years are going to be fascinating.