Fusion Frontiers: SCSP Wrapped Day 3 Recap
In this installment of SCSP Wrapped, SCSP experts Caleb Barnes, Nicholas Furst, and David Lin sat down with Nyah Stewart to discuss a technology that has moved from the realm of science fiction to a critical frontier of the U.S.–China competition: Fusion Energy.
Once viewed purely as a scientific experiment to recreate the process that powers the sun, fusion is rapidly approaching commercial reality. This shift carries profound implications for energy security, economic competitiveness, and the balance of geopolitical power. Here are the key takeaways from the discussion on why fusion matters, where the United States stands relative to China, and what to expect in 2026.
The Strategic Case for Fusion
In an era of rising electricity demand driven by AI data centers and industrial re-shoring, the world needs more energy. With estimates suggesting energy demand could grow by up to 3.5% annually through 2040, fusion offers a unique solution: clean, firm power with no meltdown risk and no long-lived radioactive waste.
However, fusion is not just about energy; it is a fundamental technology platform. The first nation to commercialize fusion will not only untether itself from the geography of hydrocarbon resources but will also dominate the supply chains for high-temperature superconductors, advanced power electronics, and precision manufacturing.
The U.S.-China Competition
While the United States was the first to achieve fusion ignition—breaking the scientific frontier at Lawrence Livermore National Lab in December 2022—China has responded with an unprecedented infrastructure build-out.
China’s Surge: Since January 2023, China has conservatively mobilized $6.5 billion for fusion infrastructure.
The Industrial Gap: While the U.S. has a vibrant private ecosystem, China is leveraging its industrial capacity to deploy mass resources for large-scale energy projects. We are at risk of losing our scientific lead to China’s manufacturing base.
SCSP’s Fusion Commission & Supply Chain Vulnerabilities
To address these challenges, SCSP’s bipartisan Commission on the Scaling of Fusion Energy recently concluded a year of work with a legacy-defining national goal: break ground on more than one industry-led fusion demonstration power plant in the U.S. by the end of 2028 that leads to commercialization.
But a fusion industry only matters if we can build it. SCSP’s new U.S. Fusion Supply Chain Report analyzed 14 major components to identify critical vulnerabilities. The highest risk identified? Enriched Lithium-6.
Lithium-6 is essential for breeding tritium fuel within fusion machines.
The United States banned its traditional method of production in 1963.
Predictions for 2026
The panel predicts that 2026 will be a pivotal year for the industry:
Shovels in the Ground: We expect to see tangible infrastructure developments, moving beyond research to the construction of pilot plants.
DOE Reorganization: All eyes will be on the Department of Energy’s newly created Office of Fusion to see how it accelerates national efforts.
AI Integration: The convergence of AI and fusion will accelerate. Just as AI requires massive energy, AI is being used to solve complex plasma physics problems—handling tasks human operators cannot, such as stabilizing plasma “whips” in real time.
Learn More
For those looking to deepen their understanding of this critical technology, SCSP is partnering with Coursera to launch a fusion micro-credential course in early 2026.