Fusion Energy Breakthrough: The World's Most Powerful Magnet Paves the Way for Clean Energy Revolution

The global race to harness fusion energy—reproducing the sun’s energy-producing process on Earth—took a monumental leap forward in 2025 with the completion of two groundbreaking magnets. The International Thermonuclear Experimental Reactor (ITER) project’s Central Solenoid, the world’s largest superconducting magnet, and MIT and Commonwealth Fusion Systems’ (CFS) 20-tesla high-temperature superconducting magnet represent critical milestones that could redefine the energy landscape. These advancements not only signal progress toward fusion’s long-awaited commercialization but also present compelling investment opportunities in a sector poised to disrupt traditional energy markets.

The ITER Central Solenoid: A Monumental Engineering Feat
The ITER Central Solenoid, weighing 1,000 tons and standing 18 meters tall, generates a 13-tesla magnetic field—280,000 times stronger than Earth’s. Its role is pivotal to confining plasma at 150 million degrees Celsius, a prerequisite for fusion reactions. This magnet, a collaboration among 35 nations, will enable ITER to achieve its first plasma by 2025 and aims to produce a tenfold energy gain by 2033.

The project’s scale is staggering: the solenoid’s support structure alone required 9,000 components and collaboration among eight U.S. companies. Despite delays, ITER’s construction has now reached 100% of its 2024 milestones, with the first vacuum vessel sector installed in April 2025.

MIT-CFS’s 20-Tesla Magnet: A Quantum Leap in Compact Fusion
While ITER tackles fusion on a grand scale, MIT and CFS are pursuing a faster, smaller path. Their 20-tesla magnet, using rare-earth barium copper oxide (REBCO) superconductors, shattered records by enabling confinement of plasma at temperatures exceeding 100 million degrees. This breakthrough underpins the SPARC project, a compact tokamak designed to achieve net energy output—more energy than it consumes—by 2025.

The magnet’s 267 kilometers of superconducting tape, arranged in 16 stacked plates, reduces the required device size by a factor of 40 compared to traditional superconductors. This innovation slashes costs: MIT estimates SPARC’s design could reduce the cost per watt of fusion energy by nearly 40 times. If successful, SPARC will validate the feasibility of commercial fusion plants like ARC by the mid-2030s.

Venture capital inflows into fusion startups have surged, reaching over $1.5 billion in 2023, a 200% increase from 2020. Investors like Breakthrough Energy Ventures and Bill Gates’s fund have backed CFS and others, signaling confidence in the technology’s near-term potential.

Investment Implications: Betting on Fusion’s Coming-of-Age
The fusion advancements of 2025 highlight three investment angles:

1. Private Equity and Venture Capital: Startups like CFS, which has raised over $1.1 billion, offer equity opportunities as they commercialize breakthroughs.

2. Public Market Proxies: Companies with fusion projects or enabling technologies, such as Lockheed Martin (LMT), which invests in its compact fusion reactor, or superconductor suppliers like Superconductor Technologies Inc. (SCON), could see valuation boosts as fusion nears reality.

3. ETF Exposure: The iShares Global Clean Energy ETF (ICLN), which tracks companies in solar, wind, and emerging technologies, provides indirect exposure to the sector’s growth.

Conclusion: A Paradigm Shift in Energy, Backed by Data
Fusion’s progress is no longer theoretical. ITER’s 2033 timeline and SPARC’s 2025 target mark a dual-track path to commercialization. The MIT-CFS magnet’s 20-tesla achievement alone reduces reactor size and cost, enabling a scalable model. With global fusion R&D investments surpassing $20 billion annually and venture capital pouring in, the sector is primed for breakthroughs.

Should SPARC succeed in 2025, fusion could disrupt a $230 billion global energy market by the 2030s, displacing fossil fuels and reshaping utility sectors. Investors seeking long-term growth should look beyond traditional energy stocks—such as Exxon (XOM) or Chevron (CVX)—and instead focus on the pioneers of this clean energy revolution. The magnets of 2025 are not just engineering marvels; they are the keys to unlocking an era of limitless, carbon-free power.