In October 2025, San Diego Regional EDC released “Catalyzing CA’s Fusion Advantage: Roadmap to Commercialization,” an interactive web report quantifying the economic impact of California’s fusion energy industry and exploring its potential to support more than 40,000 jobs and $125 billion to the state economy.
With electricity demand rising and climate targets tightening, the world is facing an impending energy crisis. These challenges, combined with grid instability and geopolitical vulnerability, have underscored the need for groundbreaking commercial technologies, as well as coordinated policy and regulatory frameworks to harness the state’s full potential.
The same process that powers the sun, fusion energy has long been considered the “holy grail” of power: A clean, safe, and virtually limitless source of baseload electricity. It offers high power density, no carbon emissions, minimal and short-lived radioactive waste, no risk of meltdown, and 24/7 reliability.
California has already begun to establish itself as a global leader in the fusion energy industry. The presence of industry titans such as General Atomics and TAE Technologies, coupled with world-leading R&D institutes like Lawrence Livermore National Laboratory (LLNL) and UC San Diego’s fusion cluster, positions the state as one of the world’s most promising regions for fusion commercialization. These institutions also host two of the nation’s most significant fusion research facilities—General Atomics’ DIII-D, the only operational fusion user facility in the country, and LLNL’s National Ignition Facility, where the first successful ignition proved that fusion energy is possible.
“With the right support, California can lead the in the commercialization of fusion energy, capturing the economic benefits that come from it while reshaping the global energy landscape,” said Eduardo Velasquez, Sr. Director of Research and Economic Development at San Diego Regional EDC, the report’s author. “EDC’s report brings into focus the regions, firms, and talent currently driving the industry, as well as the opportunities and hurdles the state faces in scaling from fusion R&D hub to a production powerhouse.”
Informed by nearly two dozen executive interviews with fusion business leaders, academia, and local governance, the report—available at fusionCA.org—dives deep into current industry strengths, future growth scenarios, and policy recommendations needed to drive industry competitiveness in California.
KEY FINDINGS
- California leads the nation in fusion energy development. The state boasts 16 core fusion companies—more than one-third of all U.S.-based fusion companies—and has captured more than $2.2 billion in cumulative private and public funding since tracking began.
- The fusion industry already generates significant economic impact—with even more high-growth potential. Currently, fusion energy accounts for approximately 4,700 jobs across California and generates $1.4 billion in annual economic output. The industry has the potential to grow to between $48 billion and $125 billion, depending on successful commercialization and state policy decisions.
- California excels in research but faces commercialization challenges. The state’s world-class universities, national laboratories, and private investment ecosystem position California as the global leader in fusion R&D. However, barriers such as regulatory uncertainty, high land costs, grid interconnection delays, and lack of fusion-specific policy frameworks threaten California’s ability to retain companies as they transition from R&D to commercial deployment.
- Maintaining fusion leadership requires strategic policy measures and state support. Success depends on recognizing fusion as ‘clean energy’ under state law, establishing clear regulatory pathways, preparing appropriate sites for establishing commercial research centers and fusion energy plants, and creating coordinated policy support. Without decisive action, California risks losing fusion companies to other states offering more favorable commercialization conditions.
“As a leader in climate resilience, California has been at the cutting edge of energy transition strategies and innovation for decades. Now, as fusion presents such clear economic opportunity, our state must build a long-term policy roadmap that prioritizes and incentivizes research, commercialization, workforce development, and investment to further position us to lead in the global energy transition,” said California Senator Catherine Blakespear, Chair of the Environmental Quality Committee.
“We’re proud to play a key role in advancing fusion energy here in San Diego while collaborating with partners such as the State of California, the City of San Diego, the Department of Energy, the University of California system, and national laboratories,” said Anantha Krishnan, senior vice president for the General Atomics Energy Group. “To realize our region and state’s full potential, California companies will need financial incentives, regulatory support, and streamlined land-zoning processes. In addition, public-private collaborations to build test facilities and train the future fusion workforce will be critical to achieving success in commercializing fusion energy.”
The report was underwritten by General Atomics, with research contributions by Boston Consulting Group and sponsorship by B3K Prosperity, LLNL, Livermore Lab Foundation, Mintz, ML Strategies, and Tokamak Energy, and unveiled at a press conference and industry reception October 9. Congressman Scott Peters, Senator Catherine Blakespear, and other leaders across the state were in attendance.
