For decades, fusion was a physics race discussed in policy circles as a “science experiment.” But fusion is turning into an industrial race capturing the attention of government and industry leaders worldwide. The promise of abundant, self-sustaining power has made the fusion industry a compelling frontier in energy innovation as the needs of economy-wide electrification come into sharper focus. Through new national roadmaps and strategy announcements, the United States, China, Japan, Germany, and the United Kingdom have all affirmed they see fusion as critical to strengthening energy security, fostering economic growth and maintaining technological leadership. ¹ Notably, the People’s Republic of China designated fusion as a “key field leading future development” in its 15th Five-Year Plan.

Historically, the global competition for fusion energy has been framed almost exclusively as a quest for scientific milestones. The narrative is beginning to change.

As confidence in the underlying science has grown and commercialization timelines draw closer, the focus has shifted from solely proving the physics to building the industrial capacity needed to deploy at scale and to eventually deploy fusion-generated power to the wider economy. The policy work now underway to shape fusion supply chains, long-term investments, workforce, and regulatory pathways may end up having nearly as much influence over who leads the industry as the reactor designs themselves. Should fusion fulfill its promise, it has the potential to define the next industrial era by powering advanced computing, precision manufacturing, and other energy intensive industries with clean and inexhaustible fuel.

In June, the Fusion Industry Association hosted its inaugural Fusion Supply Chain Trade Show in Santa Fe New Mexico, bringing together fusion companies, policymakers, investors, and suppliers around the sector’s emerging industrial base. ² The convening demonstrated a new phase for the industry: moving beyond proving fusion’s feasibility toward building the global industrial base needed to deliver it.

Recent Legal, Regulatory, and Commercial Developments

• On July 9, 2024, the bipartisan A ccelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act , was signed into law. The ADVANCE Act modifies the Atomic Energy Act of 1954, as amended (AEA), to add the definition of “fusion machine” and amend the definition of “byproduct material” to include fusion machine generated radioactive material. These changes are important because they are viewed as a path towards accelerating new nuclear energy technologies including fusion, as well as advancing overall U.S. nuclear energy leadership.
• In February 2026, to implement the ADVANCE Act, the U.S. Nuclear Regulatory Commission issued a proposed rule detailing a dedicated fusion framework that treats fusion plants as byproduct material facilities rather than under the framework applicable to nuclear reactors. ³ A final rulemaking is still being developed.
• The Department of Energy released its Fusion Science & Technology Roadmap which lays out a “Build, Innovate, Grow” strategy through the mid 2030s. ⁴
• The Genesis Mission, announced in 2026, is a DOE-led national initiative to build an AI-enabled discovery platform that connects supercomputers, AI models, experimental facilities, and federal datasets to accelerate breakthroughs in energy and national security. ⁵
• Fusion developers are increasing supply chain spend, while large tech firms are signing early offtake agreements and exploring fusion as a future power source for data centers and advanced manufacturing. ⁶

Policy Recommendations and Requests from the Fusion Industry

• Ensure regulatory certainty. Move quickly from high level decisions to finalized regulations and guidance so companies can design and finance projects against clear licensing pathways instead of case by case improvisation.
• Expand and clarify which fusion materials are eligible for Section 45X tax credits or related incentives, ensuring projects and suppliers can access predictable financial support. ⁷
• Use federal grants, loans, loan guarantees, and purchase or offtake agreements to de-risk first of a kind plants and bridge the gap between technical readiness and purely private project financing.
• Consider targeted use of Defense Production Act authorities to accelerate domestic capacity in critical fusion related materials, components and manufacturing capabilities. Reducing exposure to foreign chokepoints before fusion deployment scales. ⁸

As fusion gains its place on industrial strategy agendas, Silverado Policy Accelerator will be examining how access to this transformative power source could reshape geoeconomic and strategic leverage. These implications for global competitiveness are one reason fusion is being viewed as a national security priority. Across recent reports and expert commentary, it is understood that countries that lead in fusion are likely to gain advantages in energy security, advanced industry, and critical infrastructure, while countries who rely on externally controlled supply chains may be exposed to a new strategic dependency.

Fusion is already testing more than physics. As commercial signals build and scientific milestones are reached, the evidence would suggest that new bottlenecks, funding needs and market dynamics may emerge. The countries who treat those as policy problems now, rather than after the reactors are commercialized, will be best positioned to set industrial terms of the future.