Proxima Fusion announced plans to invest €140 million ($162.6 million) in a new factory dedicated to producing fusion-grade high-temperature superconducting (HTS) tape. This tape is a crucial component for the startup's fusion reactor design, used to generate strong magnetic fields necessary to contain plasma for fusion reactions. The company, based in Germany, intends to fund the factory through a combination of public and private sources, including a €21 million contribution from the state of Lower Saxony. This investment follows a recent €411 million funding round that significantly increased Proxima Fusion's financial resources. The startup's demonstration reactor will require approximately 20,000 kilometers of HTS tape, with commercial reactors needing double that amount. Currently, most HTS tape production is concentrated in China and Japan. HTS tape technology, developed over the past decade, has been instrumental in enabling smaller and more efficient fusion reactor designs by producing strong magnetic fields at relatively high temperatures. Beyond fusion, HTS tape is also being explored by other companies to enhance data center efficiency and power density. Proxima Fusion's move to establish local production addresses supply chain concerns and supports the broader development of fusion energy technology.