Core Viewpoint - The inclusion of controllable nuclear fusion in the national future industrial system marks its transition from frontier scientific exploration to a strategic technological direction, highlighting its potential as a clean baseload energy source that supports carbon reduction in high-energy-consuming industries and enables applications across multiple fields [1] Summary by Relevant Sections Commercialization Drivers - The urgent demand for stable, clean, and high-energy-density energy sources positions controllable nuclear fusion as a core direction for energy transition [2] - Continuous breakthroughs in key technologies, such as the net energy gain from the NIF device and the mature application of high-temperature superconducting magnets, are advancing the engineering validation of controllable nuclear fusion [2] - The number of private fusion companies globally is expected to reach 45 by 2024, accelerating the transition from laboratory research to commercial application [2] - Supportive policies from governments, including legislation and funding, are creating a favorable environment for the development of fusion energy [2] Industry Chain Collaboration - Upstream superconducting materials, special materials, and key equipment are seeing cost reductions and efficiency improvements, with leading companies achieving technological breakthroughs that lay a solid foundation for commercialization [2] - Multiple technological paths are being pursued in controllable nuclear fusion, with magnetic confinement currently leading, particularly through the Tokamak approach, with ITER expected to deliver its first plasma between 2030 and 2035 [2] - Global investment in the fusion industry has grown rapidly, with total investment increasing from $1.9 billion in 2021 to approximately $9.766 billion by 2025, representing over a fivefold increase in four years [2] Investment Opportunities in Upstream Core Segments - Investment opportunities are highlighted in the upstream core segments, including: - Inertial confinement laser systems, focusing on enhancing the power, efficiency, and beam quality of semiconductor laser chips to meet the extreme requirements of fusion devices [3] - Superconducting cables, which are crucial for energy transmission in Tokamak devices, significantly impacting the overall investment costs and device efficiency [3] - Monitoring and control systems, which are essential for the precision and safety of plasma confinement, facing increasing demands for real-time performance and intelligence as fusion devices advance [3] - The National Development and Reform Commission and the National Energy Administration have prioritized research on AI-based intelligent control systems for controllable nuclear fusion, aiming for world-leading AI technology in the energy sector by 2030, creating favorable conditions for technological collaboration across the industry chain [3]

Core Insights - The 14th Five-Year Plan incorporates controllable nuclear fusion into the national future industrial system, marking a transition from frontier scientific exploration to a strategic technological breakthrough direction [1] - As a clean baseload energy source, nuclear fusion can support carbon reduction upgrades in high-energy-consuming industries and has potential applications across multiple fields [1] - The current industrial chain is experiencing collaborative breakthroughs in upstream, midstream, and downstream sectors, with continuous improvements in the maturity of core materials, key equipment, and integrated design technologies, laying the foundation for commercialization [1] - Investment opportunities are recommended in the upstream and downstream industrial chain, particularly in superconducting cables, lasers, and sensing, monitoring, and control systems [1]

Core Viewpoint - The inclusion of controllable nuclear fusion in China's 14th Five-Year Plan marks its transition from frontier scientific exploration to a strategic technological focus, establishing a foundation for commercialization and various applications in energy-intensive industries [2][9]. Summary by Sections Commercialization Drivers - The urgent demand for stable, clean, and high-energy-density energy sources is propelling controllable nuclear fusion as a core direction for energy transition [5]. - Continuous breakthroughs in key technologies, such as the NIF device's net energy gain and the mature application of high-temperature superconducting magnets, are advancing engineering validation [5][14]. - The number of private fusion companies globally has increased to 45 by 2024, with total financing reaching $7.12 billion, accelerating the transition from laboratory research to commercial application [5][14]. - Governments are creating favorable policy environments through legislation and funding support, paving the way for fusion energy development [15]. Industry Chain Collaboration - The upstream sector is seeing cost reductions and efficiency improvements in superconducting materials and key equipment, laying a solid foundation for commercialization [5]. - The main technical paths for controllable nuclear fusion include magnetic confinement, with Tokamak being the mainstream, and inertial confinement, with NIF as a breakthrough [5][16]. - Global investment in the fusion industry has surged from $1.9 billion in 2021 to approximately $9.766 billion by 2025, reflecting a growth of over five times in four years [5][14]. Investment Opportunities in Upstream Core Links - Key investment opportunities include: - Inertial confinement core laser systems, focusing on enhancing semiconductor laser chip power and efficiency [6]. - Superconducting cables, which are crucial for energy transmission in Tokamak devices, significantly impacting overall efficiency and cost [6]. - Monitoring and control systems, which are essential for plasma confinement precision and operational safety [6]. Technological Breakthroughs - Significant milestones in 2025 include the EAST device achieving a world record of 1,066 seconds of stable plasma operation at 100 million degrees Celsius [8]. - The establishment of the China Fusion Energy Company aims to integrate resources for the commercialization of fusion energy [8]. - The BEST device's precise installation of a 400-ton dewar base marks a critical step towards achieving the world's first fusion power demonstration by 2027 [8]. Policy Support and International Collaboration - The Chinese government has included controllable nuclear fusion in its strategic planning, emphasizing technological innovation for energy transition [9]. - International collaboration is exemplified by the ITER project, which involves 35 countries and aims to validate the engineering feasibility of magnetic confinement fusion [15]. Market Potential and Future Outlook - The global market for high-temperature superconducting materials used in fusion devices is projected to grow from $300 million in 2024 to $4.9 billion by 2030, with a compound annual growth rate of 59.3% [35]. - The commercialization of controllable nuclear fusion is expected to enter the demonstration phase around 2045, with potential for commercial power generation by 2050 [47].