Israel outlines nuclear-fusion investment options of up to $644 million, seeking leadership before global supply chains take shape

Israel’s Ministry of Energy and Infrastructure has set out three possible investment strategies for the country’s nuclear-fusion sector, including a comprehensive national program with a budget of up to 2 billion shekels ($644 million). The ministry said on Thursday that Israel must act in the coming years to establish itself as a global industry leader before supply chains become established.

The options range from expanding the Israeli Institute for Nuclear Fusion and Hot Plasma to creating the national program. The ministry said fusion could become one of the world’s main energy sources over the coming decades, with a market worth hundreds of billions of dollars.

The report points to Israeli capabilities in high-power lasers, radio-frequency electronics, advanced materials, artificial intelligence, power electronics and robotics. It says some of those capabilities were developed through the country’s military and high-tech industries. Combining public and private investment with Israel’s scientific and entrepreneurial strengths could allow the country to “play a significant role in shaping what appears to be the next energy revolution,” the ministry said.

Shahar Dolev, a senior official in the ministry’s Policy Planning and Strategy Division, described fusion as a “strategic opportunity to join the global race for nuclear fusion development” and a chance to make Israel “a leading technological powerhouse in this domain.”

The ministry expects the first commercial fusion power plants to connect to electricity grids in the 2030s. It said a global market worth hundreds of billions of dollars could emerge between 2040 and 2050. Israeli companies active in the sector include nT-Tao, which is developing a compact fusion reactor, and FusionMantle, which specializes in reactor core components.