California is strengthening its position as a leader in fusion energy research and development, supported by recent investments, legislation, and a new report from the San Diego Regional Economic Development Corporation (EDC). The state has been recognized for hosting a significant share of the nation’s fusion companies and for attracting substantial investment in this emerging sector.
Governor Gavin Newsom emphasized the collaborative efforts driving progress in clean energy: “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.”
A recent study by the San Diego Regional EDC found that California houses more than one-third of all U.S.-based fusion companies. Since 2021, these companies have received over $2.2 billion in combined public and private funding. The report suggests that depending on technological advances and successful commercialization, the sector could generate between $48 billion and $125 billion in economic impact.
In November, Governor Newsom signed Senate Bill 80 to accelerate research and development in fusion energy within California. The bill established the Fusion Research and Development Innovation Initiative with an allocation of $5 million to further advance technology capabilities supporting commercialization.
The state recently hosted its first statewide gathering focused on fusion energy. Organized by General Atomics, Lawrence Livermore National Laboratory, University of California San Diego, along with other state agencies such as the California Energy Commission and GO-Biz, this event highlighted new legislative support for fusion research as well as regional innovation hubs. During this convening, it was announced that University of California laboratories will receive $8 million in grants aimed at accelerating fusion research efforts.
California’s current fusion sector supports about 4,700 jobs statewide with an annual economic output estimated at $1.4 billion. The state is home to major facilities including DIII-D National Fusion Facility in San Diego—the largest magnetic-confinement tokamak user facility—and Lawrence Livermore National Laboratory where researchers achieved a milestone laboratory fusion ignition event in December 2022.
In terms of broader clean energy achievements, California sourced two-thirds of its electricity from clean sources during 2023—making it the largest global economy to reach this level—and operated on entirely clean electricity for part of almost every day throughout the year.
Fusion technology is viewed as a promising source for safe, carbon-free power that could complement existing renewable resources while supporting climate goals and enhancing both U.S. energy security and global access to sustainable electricity.
Economically, California continues to lead nationally across several sectors including business startups, venture capital investment, manufacturing, agriculture growth fueled by population increases as well as tourism spending.
