Fusion energy is in a crucial transitional phase with investment reaching a new scale, but the path from scientific achievement to commercially viable energy will require considerably more than capital alone, an International Atomic Energy Agency (IAEA) report has said.

According to the IAEA World Fusion Outlook 2026, the challenge for the industry is increasingly one of integration and the next phase of fusion will be defined not by progress in any one field but by “the ability to bring together science, engineering, investment, regulation and international cooperation”.

Private fusion companies attracted a record $4.5bn (€4.06bn) in new funding in the 12 months leading up to July 2026, while governments around the world continued to strengthen national fusion programmes and develop policies to support research, technology development and future deployment.