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Dec 15, 2025

California continues to lead the nation in fusion energy, investing in technology of the future

What you need to know: The San Diego Regional Economic Development Corporation's recent study highlights California's emerging fusion energy sector as it drives project commercialization to help support the state's clean energy progress.

SACRAMENTO – Home to breakthrough technologies and world-class research institutions, California is the nation's fusion energy research and development leader and will help continue to lead the country in advancing new and promising clean energy technologies. Recent state funding and legislation, coupled with a recently released fusion technology report from the San Diego Regional Economic Development Corporation (EDC), reinforce California's dominance in this critical and emerging technology.

California's fusion ecosystem can revolutionize the clean energy sector through deep collaboration between our universities, national laboratories, industry partners and state leaders. By advancing breakthrough technologies and fostering an industry-leading workforce, we are shaping the future of clean energy and demonstrating once again that California leads the world in innovation.

Governor Gavin Newsom

California's fusion energy sector, a "bet" sector under the California Jobs First Economic Blueprint, represents a transformative economic opportunity for the state. The new study, authored by the San Diego Regional EDC, finds that California is home to more than one-third of all U.S.-based fusion companies and has attracted over $2.2 billion in cumulative public and private investment since tracking began in 2021. It also noted that the industry has the potential to grow to between $48 billion and $125 billion in economic impact, depending on scientific advancements and successful project commercializations.

Last month marked a major milestone for the fusion energy ecosystem with the first statewide convening on the topic, hosted by General Atomics, Lawrence Livermore National Laboratory, and the University of California San Diego in collaboration with the University of California's Office of the President, the California Energy Commission, and the California Governor's Office of Business and Economic Development (GO-Biz). The convening provided an in-depth overview of California's emerging fusion energy landscape, highlighting recently signed legislation supporting the sector, state programs and resources, and regional hubs advancing fusion energy innovation, and also spotlighted the University of California's announcement of $8 million in grants awarded to UC laboratories to accelerate fusion research.

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Expanding fusion innovation through state investment

In November, the Governor signed Senate Bill 80, authored by Senator Anna Caballero (D-Merced), to accelerate research and development of fusion energy in California. SB 80 created  the Fusion Research and Development Innovation Initiative, which includes $5 million to advance fusion research and development. This investment will help accelerate new technology capabilities that support project commercialization and continue California's dominance in developing and deploying novel clean energy technologies.

Leading the fusion energy ecosystem

The fusion energy sector currently supports approximately 4,700 jobs across California, generating $1.4 billion in annual economic output. The state is home to both of the nation's premier fusion research centers: the DIII-D National Fusion Facility in San Diego, the United States' largest magnetic-confinement (tokamak) user facility, and the Lawrence Livermore National Laboratory, the world's most energetic laser for inertial-confinement fusion, where researchers achieved the first laboratory fusion ignition in December 2022, marking a critical step in fusion viability. Both facilities support a vibrant startup environment.

Advancing California's clean energy future

California was powered by two-thirds clean energy in 2023, making it the largest economy in the world to achieve this level of clean energy. The state has also run on 100% clean electricity for some part of the day almost every day this year.

Fusion, the same energy that powers the sun, has the promise of providing a safe, carbon-free, and virtually limitless source of electricity. As the technology advances, fusion has the potential to complement California's existing clean energy leadership, to play a role in helping California achieve its ambitious climate goals, to enhance U.S. energy security, and to expand global access to clean energy.

California's economic strength

California is not only a national economic powerhouse – it is driving the future. The state is one of the world's largest economies, feeds the country and leads the nation in new business starts, venture capital investment, manufacturing, and agriculture. With an increasing population and record-high tourism spending, California's economy continues to grow across key regions and sectors – proving that innovation and inclusion go hand in hand.

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