Munich Startup Proxima Fusion Secures €411 Million for Fusion Reactor Development
Munich/Garching, Bavaria, Germany – July 8, 2026 – Proxima Fusion, a Munich-based startup, has announced a successful financing round, raising a substantial €411 million for the construction of a fusion reactor. Major players such as RWE and Google participated in this latest funding initiative, as confirmed by the company.
This significant financial boost, which nearly doubles with an additional €400 million from the Free State of Bavaria as per an agreement in February, propels Proxima Fusion into the exclusive circle of ‘unicorns’ – startups valued at over one billion euros. The company’s valuation now stands at more than €2.4 billion, solidifying its position in the competitive landscape of future technologies.
Ambitious Plans: Commercial Reactor by 2030s, Demonstration Reactor by Early 2030s
Proxima Fusion aims to construct a commercial fusion reactor in Gundremmingen, Swabia, by the end of the 2030s, with the goal of feeding electricity directly into the grid. Prior to this, a demonstration reactor named ‘Alpha’ is slated for completion in Garching near Munich by the early 2030s. The ‘Alpha’ project alone is estimated to cost two billion euros. To secure this funding, the company is also looking to the federal government, hoping for a corresponding funding tender in the autumn, according to a company spokesperson. Parts for ‘Alpha’ are already in production, with the first magnet expected to be completed by the end of next year. The recently acquired funds will be allocated towards the construction, expansion of development and manufacturing capacities, and the advancement of core technologies.
Stellarator Technology: A Complex Approach to Fusion
While fusion research has historically been dominated by states and state communities, an increasing number of startups are now pursuing various approaches to build fusion reactors. Beyond the conventional method of confining hot plasma with magnetic fields, other strategies include using lasers for ignition. Proxima Fusion is committed to magnetic fields, but with a unique twist: their reactor will be a ‘stellarator.’ Unlike the more common ‘tokamak,’ which resembles a donut, stellarators utilize complex magnetic coils to twist the confined plasma. This design facilitates continuous operation of the reactor, although it presents greater challenges in construction and engineering. The startup is leveraging new manufacturing techniques and materials to overcome these complexities.
Germany, in particular, offers a high level of expertise in this field, coupled with existing experience from the Max Planck Institute for Plasma Physics’ Wendelstein program. Proxima Fusion itself originated as a spin-out from this esteemed institute.
Germany and Europe: Mobilizing Capital for Future Technologies
Francesco Sciortino, co-founder and CEO of Proxima Fusion, emphasized the significance of the funding round. "This financing demonstrates that Germany and Europe are capable of mobilizing international capital for strategic future technologies," he stated. "The international investment community has sent a strong signal: it trusts not only Europe’s scientific excellence but also our ability to build globally competitive industrial companies from it." Sciortino believes that fusion technology has the potential to achieve "a similar economic significance to that of the automotive industry" and could become a new key industry in Germany.
International Competition and the Promise of Fusion Energy
Despite the optimism, Proxima Fusion faces stiff international competition, with billions already invested in fusion startups in the USA and China. While some scientists view fusion research as a dead end after decades of pursuit, others continue to see it as a great hope. Proxima Fusion currently considers itself to be at the forefront of stellarator technology.
Fusion energy is based on the process of atomic nuclei merging (fusion). This process powers the sun and other stars, releasing vast amounts of energy. Fusion energy is considered cleaner than nuclear fission and, unlike fossil fuel power plants, produces no direct CO2 emissions.
