Proxima Fusion and the State of Lower Saxony signed a Memorandum of Understanding on 9 September 2026 to establish large-scale production of high-temperature superconducting tape in Germany. The planned facility, backed by approximately €140 million in investment for its first two phases, is intended to close a strategic gap in Europe's fusion energy supply chain. The initiative will support Proxima's Alpha fusion demonstrator and its planned Stellaris power plant while creating highly skilled jobs across Lower Saxony.
A First-of-Its-Kind Industrial Facility
The proposed production site would be the first industrial HTS tape facility of its kind in Germany and Europe. HTS tape becomes superconducting at relatively high temperatures and can carry electrical currents with virtually no resistive losses, enabling exceptionally powerful and compact electromagnets that are essential for confining plasma inside fusion machines. The site is intended to create an industrial foundation for Proxima's Alpha fusion demonstrator, its planned Stellaris power plant and, ultimately, the production of stellarators at scale.
Strategic Need for a European Supply Chain
Today, HTS tape is manufactured at industrial scale primarily in Asia, creating a dependency that Proxima and Lower Saxony aim to reduce. The company expects its Alpha demonstrator to require approximately 20,000 kilometres of HTS tape, while the planned Stellaris power plant would need about 40,000 kilometres. Long-term purchase volumes are expected to be critical for scaling production, retaining manufacturing expertise and reducing the cost per metre, while keeping the stellarator supply chain almost entirely within Europe.
Funding and Economic Impact
The total investment for the first two phases, running until the end of 2029, is planned at roughly €140 million and will be split equally between private and public funding. Lower Saxony has committed €21 million, representing just under 30 percent of the proposed public contribution. The announcement follows a €411 million funding round that strengthened Proxima's position among the best-funded fusion startups.
Collaboration and Broader Applications
The new capacity would support Alpha and Stellaris, as well as applications including high-performance electricity grids, medical imaging and treatment, advanced propulsion systems and data centre infrastructure. Proxima is in discussions with several international technology partners about bringing established HTS manufacturing expertise to Lower Saxony. More than 50 companies across Europe are already working through the Alpha Alliance to develop an industrial supply chain for fusion energy.
Statements from Leaders
Olaf Lies, Minister-President of Lower Saxony, said the state is becoming a pioneer in European HTS manufacturing, bringing advanced manufacturing, economic value and highly skilled jobs. Dr Francesco Sciortino, co-founder and CEO of Proxima Fusion, described HTS tape as a critical technology for scaling fusion rapidly and said Alpha and Stellaris will create demand to build local expertise. Falko Mohrs, Minister of Science and Culture, highlighted Lower Saxony's research strengths in key fusion technologies, especially laser physics and photonics.
From Fusion Research to Industrial Value
Through the memorandum, Lower Saxony and Proxima are creating a framework for translating technological demand into an industrial production base. The agreement covers the assessment of potential sites in Lower Saxony, the establishment of milestone-based support and funding structures, and the facilitation of permitting processes. It also includes developing partnerships with companies, municipalities and research institutions across the state.
The agreement between Proxima Fusion and Lower Saxony marks a significant step toward industrialising fusion-grade HTS tape production in Europe. By combining public support, private investment and research expertise, the initiative aims to translate Germany's stellarator research leadership into a durable industrial advantage. If successfully implemented, the facility would support both the Alpha demonstrator and a broader European supply chain across energy, medical and advanced technology sectors.