Group 1: Industry Developments - The China National Nuclear Corporation announced that the new generation artificial sun "China Circulation No. 3" achieved a record of 1 million amperes and 100 million degrees Celsius in plasma current and ion temperature, respectively [2] - The Hefei compact fusion energy experimental device (BEST) project commenced two months ahead of schedule, aiming to demonstrate fusion energy generation and contribute to the development of fusion energy in China [4] - Controlled nuclear fusion is viewed as the "ultimate solution for energy," with deuterium fuel theoretically available for human use for hundreds of billions of years [4] Group 2: Company Initiatives - New Hope Group began exploring compact nuclear fusion technology in 2017 and announced plans to build a small nuclear fusion experimental device, becoming the first private Chinese company to develop fusion energy [6] - Energy Singularity Energy Technology (Shanghai) Co., Ltd. was established in 2021 and is developing the Honghuang 70 device, which is the world's first fully high-temperature superconducting tokamak device [7] - Star Ring Energy, founded in October 2021, aims to build China's first commercial controllable fusion reactor, focusing on miniaturization and rapid iteration of fusion energy devices [8] Group 3: Investment and Funding - China National Nuclear Power and Zhejiang Energy Power increased their investments in China Fusion Energy Co., Ltd., marking significant financial support from leading nuclear and power enterprises [10] - China National Petroleum Corporation entered the fusion sector by increasing the registered capital of Fusion New Energy (Anhui) Co., Ltd. from 5 billion to 14.5 billion yuan, indicating strong financial backing for nuclear fusion initiatives [11]

Investment Rating - The report maintains a positive outlook on the controllable nuclear fusion industry, indicating a strong belief in the investment opportunities across the entire industry chain [3][4]. Core Insights - The controllable nuclear fusion technology is transitioning from laboratory research to engineering verification, with significant advancements in China and international collaboration through the ITER project [3][5]. - The global controllable nuclear fusion market is projected to grow from $331.49 billion in 2024 to $479.5 billion by 2029, with a substantial construction phase expected between 2025 and 2035 [3][4]. - The report emphasizes the importance of high-barrier and high-value segments within the industry chain, recommending specific companies for investment [4][5]. Summary by Sections 1. Controllable Nuclear Fusion: Progress Towards the "Eternal" 50 Years - The D-T reaction is identified as the mainstream approach for nuclear fusion, offering high energy density and sustainability compared to traditional nuclear fission [14][21]. - The magnetic confinement route is confirmed as the dominant technical pathway, with significant research and development efforts in China [26][27]. 2. Global Fusion Landscape: ITER and International Cooperation - The ITER project is highlighted as the largest international scientific collaboration aimed at developing a self-sustaining nuclear fusion reactor, with China playing a crucial role [48][51]. - Various countries are increasing their investments in fusion energy, with significant funding allocated to projects like ITER and national initiatives [61][63]. 3. China's Rise in Fusion Technology - China is advancing rapidly in nuclear fusion technology, with multiple research institutions and private companies contributing to the development of various fusion routes [3][5]. - The BEST project in China has commenced ahead of schedule, indicating a robust pace in fusion technology development [3][5]. 4. Market Potential and Investment Opportunities - The report forecasts a market space of approximately $203.5 billion for controllable nuclear fusion from 2025 to 2035, with a focus on high-value segments such as superconducting materials and core components [3][4]. - Recommended companies for investment include Lianchuang Optoelectronics, Guoguang Electric, and others involved in the high-barrier segments of the industry [4][5].

Core Viewpoint - The domestic controlled nuclear fusion projects are making significant progress, with mainstream technology expected to enter the demonstration phase by 2035 and achieve commercial power generation around 2050 [1][6][14]. Group 1: Industry Progress - The controlled nuclear fusion sector has seen a surge in stock prices, with the concept stocks rising by 6.11% on May 6, 2023, following positive developments in the industry [1]. - The Hefei compact fusion energy experimental device (BEST) project has commenced its assembly work two months ahead of schedule, aiming for completion by 2027 [1]. - The International Thermonuclear Experimental Reactor (ITER) has completed the construction of all components of its superconducting magnet system, marking a significant milestone in fusion research [1][6]. Group 2: Technological Developments - The "Xuanlong-50U" spherical hydrogen-boron fusion device achieved high-temperature, high-density plasma currents exceeding 15 million degrees Celsius, surpassing the core temperature of the sun [2][5]. - New Hope Group has invested 4 billion yuan in fusion research since 2017, aiming to achieve engineering feasibility before 2035 [5]. - The industry is focusing on three main technical challenges: maintaining plasma at over 100 million degrees Celsius, ensuring materials can withstand neutron bombardment for commercial operation, and addressing the production of tritium [11]. Group 3: Investment and Market Dynamics - The global fusion industry attracted $7.1 billion in investment in 2023, with a significant portion coming from private capital [16]. - China has formed three main forces in fusion research: market-driven startups, national research teams, and private enterprises like New Hope Group, which plans to invest nearly 10 billion yuan in the next five years [16][17]. - The market for fusion devices is projected to reach 2.26 trillion yuan between 2030 and 2035, indicating substantial investment potential in components like high-temperature superconductors [18].

Core Insights - The engineering assembly of the Hefei Compact Fusion Reactor (BEST) project has officially commenced two months ahead of schedule on May 1 [1] - The BEST device aims to demonstrate fusion energy generation for the first time, building on the foundation of China's first artificial sun, the EAST device [1] - This project is expected to lead advancements in plasma physics research and contribute significantly to the development of fusion energy in China [1] Summary by Categories Project Timeline - The engineering assembly of the BEST project started earlier than planned, indicating efficient project management and progress [1] Technological Innovation - BEST will be the first to demonstrate fusion energy generation, marking a significant milestone in China's energy research and development [1] Research Contribution - The project is set to provide pioneering contributions to the field of plasma physics, enhancing China's capabilities in fusion energy [1]