California is increasing its investment in fusion energy, reinforcing its position as a national leader in the field. Recent state funding and new legislation, together with a report from the San Diego Regional Economic Development Corporation (EDC), highlight California’s continued focus on developing clean energy technologies.
Governor Gavin Newsom stated, “California’s fusion ecosystem can revolutionize the clean energy sector through deep collaboration between our universities, national laboratories, industry partners and state leaders. By advancing breakthrough technologies and fostering an industry-leading workforce, we are shaping the future of clean energy and demonstrating once again that California leads the world in innovation.”
The fusion energy sector has been identified as a priority area under the California Jobs First Economic Blueprint. According to a study by the San Diego Regional EDC, more than one-third of all U.S.-based fusion companies are located in California. Since 2021, these companies have attracted over $2.2 billion in public and private investment. The report also projects that economic impact from this industry could reach between $48 billion and $125 billion if scientific progress continues and projects move to commercialization.
A statewide convening on fusion energy was held last month by General Atomics, Lawrence Livermore National Laboratory, University of California San Diego, along with other partners including the University of California’s Office of the President and state agencies such as GO-Biz. This event provided updates on recent legislation supporting fusion research, new state programs and resources for innovation hubs, as well as highlighted an announcement by the University of California regarding $8 million in grants for UC laboratories to accelerate research.
In November, Governor Newsom signed Senate Bill 80—authored by Senator Anna Caballero—to support further development in this area. SB 80 established the Fusion Research and Development Innovation Initiative with an allocation of $5 million aimed at accelerating research efforts toward commercialization.
Currently employing about 4,700 people statewide and generating approximately $1.4 billion annually in economic output, California hosts two major U.S. fusion research centers: DIII-D National Fusion Facility in San Diego—the country’s largest magnetic-confinement facility—and Lawrence Livermore National Laboratory where scientists achieved laboratory fusion ignition for the first time in December 2022.
In 2023, two-thirds of electricity consumed within California came from clean sources; for parts of almost every day this year it has run entirely on clean power. Fusion technology is seen as having potential to provide safe, carbon-free electricity that could support both state climate targets and broader U.S. energy security goals.
California remains one of the largest economies globally due to ongoing growth across sectors like business startups and manufacturing alongside rising tourism numbers—demonstrating sustained economic expansion linked closely with technological innovation.
