Igniting the Future: Japan’s Thrilling Race to Unleash Fusion Power by the 2030s

The Japanese government has officially approved a strategic plan for fusion energy, setting a new target to generate electricity from fusion by the 2030s—advancing its original 2050 goal. This shift marks Japan’s transition from research to commercialization, with a structured approach that includes milestone-based funding to accelerate technological development. By fostering competition among private-sector players and expanding international partnerships, Japan aims to strengthen its position in the global fusion industry. With a strategy that integrates advanced research, industrial engagement, and targeted investments, the country is now working to transform fusion energy into a practical and scalable power source.

From Research to Industry: The Launch of the Fusion Energy Innovation Strategy

Japan's journey toward fusion energy commercialization began in April 2023 with the introduction of the ‘Fusion Energy Innovation Strategy’. This marked the first time Japan officially transitioned from viewing fusion as a scientific research endeavor to seeing it as a commercial opportunity and a key element in the country's energy security and carbon reduction strategy. The strategy emphasizes the role of fusion energy not only in reducing Japan's carbon footprint but also in ensuring a stable, sustainable energy supply in the future.

The Fusion Energy Innovation Strategy also aligns Japan with global competitors in the fusion race, particularly the US and UK. While Japan remains committed to international collaborative efforts such as the ITER programme, which aims to develop DEMO reactors, there is a clear intention to build Japan's own presence in the global fusion supply chain. This is a response to the accelerating R&D activities worldwide, especially from ambitious start-ups in the US and UK that have set aggressive targets for fusion power generation.

The Moonshot Programme: A High-Reward Innovation

One of the most innovative components of Japan’s fusion strategy is the Moonshot Programme, a decade-long initiative launched to drive “disruptive change” through pioneering technological innovations. The Moonshot Programme encompasses ten goals, with the tenth goal focused on fusion energy: “Realisation of a dynamic society in harmony with the global environment and free from resource constraints, through diverse applications of fusion energy, by 2050.”

The Moonshot Programme allocates $130 million in funding to support high-risk, high-reward fusion research projects, aimed at pushing the boundaries of fusion science. While this amount is not enough to build a full-scale fusion power plant, it is critical in advancing key areas of research, such as the development of a neutron source—an essential component for future fusion reactors.

This infusion of funding was a significant moment for Japan's fusion efforts, effectively doubling the country's fusion budget. In 2022, Japan’s national fusion budget was around $200 million, and the Moonshot Programme added considerable financial support to drive innovative research in critical areas of natural science.

Learning from Global Competitors: Japan’s Strategic Advantage

Despite entering the fusion race later than the US and UK, Japan’s timing allows it to learn from the successes and challenges faced by these nations. By benchmarking their policies, funding mechanisms, and industrial strategies, Japan can potentially avoid some of the early pitfalls encountered by global competitors and accelerate its own fusion progress. This approach allows Japan to enter the competitive fusion landscape with a well-informed strategy, designed to capitalize on the lessons learned from other leading nations in the field.

Although Japan will continue to participate in ITER, the country has opted not to follow ITER’s pathway entirely. Japan’s national fusion strategy will run in parallel with ITER, but with a clear focus on developing domestic capabilities and advancing its own fusion agenda.

The Role of the Private Sector and Venture Capital

Private-sector engagement is a key element of Japan’s fusion energy strategy. The Japanese government and the Japan Fusion Energy Council (J-Fusion) explicitly support this, encouraging private companies to develop fusion technology. Three major domestic fusion companies—Helical Fusion, EX-Fusion, and Linea Innovations—are already working toward building fusion energy machines, backed by significant investments from Japanese venture capital firms.

Venture capital support includes investments from major players such as Hitachi Ventures, Mitsubishi UFJ Capital, Toyota Ventures, and SMBC Venture Capital. These firms have allocated substantial capital not only to fusion companies but also to the broader fusion supply chain, underscoring the growing confidence in the commercial viability of fusion energy.

Additionally, companies like Kyoto Fusioneering have expanded globally, with subsidiaries in the UK and US. The company has also formed strategic partnerships, such as the creation of Fusion Fuel Cycles Inc., a joint venture with Canadian Nuclear Laboratories, to advance the deployment of Deuterium-Tritium fuel cycles—a critical component in the commercial viability of fusion power.

Strategic Partnerships and International Collaboration

International collaboration is central to Japan’s fusion strategy. Sumitomo Corporation has formed a partnership with Tokamak Energy to accelerate the scale-up and industrialization of the global fusion energy supply chain. Additionally, Furukawa Electric has invested in Tokamak Energy, while Sumitomo Corp and Itochu Corporation have taken stakes in TAE Technologies and Blue Laser Fusion, respectively. These investments highlight Japan’s intent to play a pivotal role in the future global fusion market.

Furthermore, the US and Japan have announced a strategic partnership aimed at accelerating fusion energy commercialization. This partnership leverages the US’s Bold Decadal Vision for Commercial Fusion Energy and Japan’s Fusion Energy Innovation Strategy. By combining their strengths, these two countries are working to create a robust global fusion market that delivers sustainable, cost-effective energy solutions.

JT-60SA: A Global Achievement in Fusion Research

Japan has long been a leader in fusion research, dating back to the 1950s. The country’s contributions include major experimental projects such as the Large Helical Device (LHD) and the JT-60 tokamak, both of which have provided critical data for the global fusion community. The JT-60SA, an upgraded version of JT-60, is one of the world’s largest tokamaks and has set a world record for plasma volume, achieving 160 cubic meters.

The JT-60SA project is part of the Broader Approach Agreement, a collaborative initiative between Japan and the European Union, designed to complement ITER and accelerate fusion development. In October 2023, the JT-60SA achieved first plasma, a significant milestone that will provide critical insights into the practical application of fusion energy. The EU Energy Commissioner, Kadri Simson, has praised the JT-60SA, calling it “a milestone for fusion history” and “the most advanced tokamak in the world.”

Therefore, with its strategic vision, advanced research initiatives, and strong private-sector involvement, Japan is positioning itself to potentially lead in the global fusion energy market. By accelerating its timeline to achieve electricity generation by the 2030s, Japan is positioning itself at the forefront of the clean energy transition. As international collaborations and private sector investments continue to grow, Japan’s fusion industry is set to play a pivotal role in delivering sustainable, cost-effective fusion energy. Building on its deep-rooted legacy in fusion research and embracing commercialization opportunities, Japan is making significant strides toward realizing fusion energy's potential as a reliable, abundant, and environmentally sustainable power source for the future.