By Da Cheung
On June 11, Contemporary Amperex Technology Co. Limited (CATL) (3750.HK) (300750.SZ) led a seed funding round of hundreds of millions of yuan in Beta Fusion, marking the battery behemoth’s first foray into the nuclear fusion sector.
Following recent investments by China’s richest man, Zhong Shanshan, in solid-state battery technology, the world’s largest battery manufacturer is pivoting its immense capital toward what many consider humanity’s ultimate clean energy solution. As the artificial intelligence boom fuels a surge in electricity demand, the quest for a limitless, zero-carbon energy source has accelerated globally. CATL, a company known for its steady and calculated expansion, is now pouring substantial resources directly into early-stage nuclear fusion. This bold move signals that the era of commercially viable fusion power may be closer than we thought.
A calculated bet on a radical path
Founded in December 2025 by Cao Zhiping, Beta Fusion boasts a core team with extensive experience at the Chinese Academy of Sciences’ Institute of Plasma Physics, the International Thermonuclear Experimental Reactor project, and Germany’s Max Planck Institute.
The founders have chosen to pursue the field-reversed configuration (FRC), a relatively niche and higher-risk alternative to the dominant tokamak approach. The tokamak is a donut-shaped machine that uses sustained magnetic fields to confine plasma, while FRC is a more compact device. Instead of attempting to burn plasma for extended periods, the FRC method uses rapid magnetic compression to dramatically boost plasma density in millisecond pulses. In essence, it trades confinement time for extreme density, according to the company.
This approach bypasses many severe engineering challenges associated with long-pulse operations, significantly lowering costs and shortening the research and development cycle. However, it is also widely viewed within the industry as the most radical, the fastest, and the riskiest choice. According to an industry insider quoted by Cailian Press, key aspects of FRC’s underlying physics have yet to be adequately validated, and its energy gain, or Q value, has not been verified by a credible third-party institution.
Despite the risks, Beta Fusion’s chosen path closely mirrors that of U.S.-based Helion Energy, which signed a landmark agreement in 2023 to provide electricity to Microsoft by 2028 via its first 50-megawatt fusion power plant. Beta Fusion says it aims to achieve 50 to 100 megawatts of grid-connected power generation within the next six to eight years.
Diversifying the energy portfolio
Beta Fusion is entering a crowded and increasingly well-funded arena. Currently, China’s nuclear fusion landscape features a distinct division that reflects a broader national strategy: putting eggs in different baskets to mitigate risk. State-owned enterprises primarily focus on the more mature Tokamak route to explore commercial power generation, while private startups are encouraged to experiment with alternative, emerging methods.
Capital is flooding into the private sector, with total disclosed funding for Chinese private fusion companies exceeding 20 billion yuan ($2.7 billion). Entities affiliated with Alibaba Group have backed other FRC-focused startups like Nova Fusion, while Ant Group has invested in Xingneng Xuanguang.
There has been some notable progress. In April, Energy Singularity announced a breakthrough in its own fusion research. Just a few days ago, DongSheng Fusion announced the completion of a $100 million Series A funding round. Backed by a team from Fudan University, DongSheng Fusion focuses on a deuterium-helium-3 fusion reaction that produces virtually no neutrons, eliminating the need for thick, expensive shielding and making it safer to deploy near cities or data centers.
From battery maker to infrastructure provider
For CATL, investing in nuclear fusion is a calculated step in its corporate evolution. Although it held 39.2% of the global electric vehicle battery market in 2025, CATL no longer views itself merely as a parts supplier for automakers.
Robin Zeng, founder and chairman of CATL, told Caijing Magazine that the firm’s ultimate goal is to become a “zero-carbon tech company” — transitioning from a battery manufacturer to a foundational infrastructure provider for a new energy society.
Beyond dominating the transport sector, CATL has aggressively expanded into the broader electricity market, establishing a firm grip on energy storage. It is now actively testing “microgrid” technologies. These systems integrate renewable energy generation and massive battery storage to create independent, resilient power networks. This microgrid strategy shares similarities with the self-built power plant model favored by U.S. tech giants, aiming to secure uninterrupted energy for intensive industrial applications.
As AI data centers demand hundreds of megawatts of continuous clean power, traditional renewables paired with batteries might not be enough in the long run. By backing a fusion startup, CATL is aiming for a stake in the ultimate energy source.
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