Western: Accelerating progress in the nuclear fusion industry, with multiple technological pathways developing in parallel.

Western released a research report stating that nuclear fusion has the advantages of high energy density and safety, and is expected to become the ultimate energy source for human civilization. The main participants in domestic nuclear fusion are led by national teams in research and development, with commercial companies responsible for project implementation. Representative devices such as BEST, CFEDR, and the Starfire-1 all have clear construction schedules, with core components bidding or accelerating progress. Major global economies are strategically focusing on the prospects of nuclear fusion and providing support in terms of policies, funding, etc., to accelerate the industrialization process. Representative devices like BEST are in the planning/construction phase, with scale bidding on the horizon. Western's main points are as follows: Nuclear fusion is expected to become the ultimate energy source, with support from policies, capital, and AI development accelerating the industrial process Nuclear fusion is the process of two light atomic nuclei combining under high temperature and pressure conditions to form heavier atoms and release a large amount of energy. Despite technical barriers such as energy balance, material performance, and tritium self-sufficiency, strong support from policies and capital will accelerate the industrial research process, with continued use of high-temperature superconducting magnetic materials, tungsten, and other new materials and technologies. Demonstration fusion power plants like China's CFETR, the EU-DEMO of the European Union, and K-DEMO of Korea are scheduled to begin construction between 2035 and 2040, with operations starting in 2050. The industry is optimistic about the implementation of nuclear fusion, with approximately 84% of companies surveyed in the 2025 Global Fusion Industry report by FIA believing that fusion power generation is expected to be achieved before 2040. AI provides strong support in exploring plasma motion patterns, predicting reaction progress, optimizing reaction conditions, etc. The main participants in domestic nuclear fusion are led by national teams in research and development, with commercial companies responsible for project implementation. Representative devices such as BEST, CFEDR, and the Starfire-1 all have clear construction schedules, with core components bidding or accelerating progress. There are diverse technological routes for nuclear fusion, with the tokamak being the most mature, while other routes like Z-pinch compression also have potential Nuclear fusion can be divided into gravitational confinement, magnetic confinement, and inertial confinement, with magnetic confinement using a strong magnetic field to confine plasma to achieve sustained reaction and energy release. This includes magnetic mirrors, stellarators, and tokamaks, with tokamaks using central helical coils, toroidal magnetic coils, etc., to confine plasma, and being the most mature and widely used technological route. EAST developed by the Institute of Plasma Physics completed 1000 seconds of "high-quality combustion" at 100 million degrees Celsius for the first time in January 2025. Inertial confinement involves compressing fuel targets with lasers and using their inertia to maintain fusion conditions, including Z-pinch compression and laser inertial confinement pathways. Magnets, vacuum chambers, etc. are the main cost components of a tokamak For ITER, a tokamak includes main components such as the blanket, vacuum chamber, magnet systems, diverters, vacuum Duval, and supporting systems like cryogenic systems, power diagnostics systems, etc., with magnets, vacuum chambers, etc. making up the main cost components, with magnets, vacuum chambers, and vacuum chamber components accounting for 28%, 8%, and 17% respectively. The industry mainly focuses on superconducting magnets that can provide stronger magnetic fields to enhance plasma confinement time, with high-temperature superconducting materials helping to increase fusion reaction rates, reduce cooling costs, and promote device miniaturization. The application of these materials will gradually increase as technology matures and production costs decrease. ITER mainly uses low-temperature superconducting materials, while new fusion devices like SPARC in the United States and "Starfire-1" in China are attempting to use second-generation high-temperature superconducting materials such as REBCO. Investment recommendations Major global economies are strategically focusing on the prospects of nuclear fusion and providing support in terms of policies, funding, etc., to accelerate the industrialization process. Representative devices like BEST are in the planning/construction phase, with scale bidding on the horizon. It is recommended to pay attention to Western Superconducting Technologies related to low-temperature superconducting magnets and to Jiangxi Lian Chuang Optoelectronic Science And Technology, Jiangsu Etern, Tongling Jingda Special Magnet Wire related to high-temperature superconductors, Hefei Metalforming Intelligent Manufacturing, Suzhou Hailu Heavy Industry related to vacuum chambers, Aerosun Corporation, Shanghai Electric Group related to vacuum Duval, Guoguang Electric, Advanced Technology & Materials, China Tungsten and Hightech Materials, Xiamen Tungsten, Anhui Yingliu Electromechanical related to diverters & blankets, Sichuan Injet Electric, Xian Actionpower Electric, Chengdu Xuguang Electronics, Baoding Tianwei Baobian Electric, Tianjin Benefo Tejing Electric, Shenzhen Prince New Materials, Sun Create Electronics related to power. Risk factors: Technology route iteration and substitution risk, key material and core component research and development risk, uncertainty in long-term funding support, and risk of commercial application scenarios being implemented.