Proxima Fusion announced plans to invest €140 million ($162.6 million) in constructing a factory dedicated to producing fusion-grade high-temperature superconducting (HTS) tape. The Germany-based startup intends to use this tape as a critical component in its fusion reactor designs, where HTS tape generates the strong magnetic fields necessary to contain plasma for fusion reactions. The company’s demonstration reactor will require approximately 20,000 kilometers of HTS tape, with commercial plants needing double that amount. Currently, most HTS tape production is concentrated in China and Japan. Proxima Fusion’s investment follows a recent €411 million funding round, positioning it among the best-funded fusion startups globally. The factory will be financed through a combination of private investment and public funds, including €21 million from the state of Lower Saxony. HTS tape has been a significant technological advancement in fusion energy, enabling more compact and efficient 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 localize HTS tape production addresses supply chain risks and supports the scaling of fusion energy technology.