Hannover – September 15, 2026 -- Proxima Fusion and the German state of Lower Saxony have signed a memorandum of understanding to build Europe's first large-scale industrial production site for high-temperature superconductor (HTS) tape used in fusion reactors, with investments of roughly €140 million planned for the first two project phases through the end of 2029.
State and private capital split the €140 million bill
Proxima aims for a 50-50 split between private and public financing. Lower Saxony intends to contribute €21 million, covering nearly 30% of the planned public funding share.
Proxima becomes anchor customer with 60,000 kilometers of demand
The company projects it needs approximately 20,000 kilometers of HTS tape for its Alpha demonstrator and a further 40,000 kilometers for the planned Stellaris power plant. This long-term offtake volume is designed to drive industrial scale-up, secure manufacturing know-how, and reduce cost per meter.
HTS tape addresses a supply-chain gap currently dominated by Asia
HTS tape is presently manufactured at industrial scale mostly in Asia. Building domestic capacity in Lower Saxony is intended to relocate the stellarator supply chain almost entirely within Europe, reducing dependency on external suppliers for a component critical to compact, high-field magnets used to contain plasma in fusion devices.
Site would anchor Proxima's Alpha and Stellaris programs
The planned factory would supply HTS tape for magnets used in stellarators, forming an industrial foundation for Proxima's fusion demonstrator Alpha and its planned Stellaris power plant, as well as future series production of stellarators. It would rank among the first facilities of its kind in Germany and Europe.
Technology carries applications beyond fusion energy
HTS materials produced at the site could also serve high-capacity power grids, medical imaging and therapy equipment, advanced propulsion systems, and other high-field magnet applications, according to the companies.
MoU sets framework for site selection and permitting support
Under the agreement, Lower Saxony and Proxima will evaluate suitable locations in the state, establish a milestone-based funding structure, support permitting processes, and pursue cooperation with local companies, municipalities, and research institutions. Proxima is in discussions with several international technology partners to bring established HTS manufacturing know-how and capacity to Lower Saxony.
Alpha Alliance already counts more than 50 industrial partners
Lower Saxony Minister-President Olaf Lies said the state is positioning itself as a leader in European HTS production. Proxima co-founder and CEO Dr. Francesco Sciortino said Alpha and Stellaris create the demand needed to build local production know-how for a technology critical to scaling fusion industrially. The proposed HTS tape production would add a key component to Proxima's existing Alpha Alliance, which already includes more than 50 industrial partners working on systems, manufacturing processes, infrastructure, and integration for the Alpha demonstrator.