The government has identified fusion power as a priority investment theme and indicated a policy of bringing combined public- and private-sector investment to approximately ¥3.1 trillion by fiscal 2040. Reports also indicate that initial operation of ITER is targeted for 2034, drawing attention to fusion-related stocks.
Fusion power is a technology that replicates the Sun's reactions on Earth. Unlike nuclear fission, the reaction stops when the fuel supply is halted, and it is currently described as placing a lower burden on radioactive-waste management. The government has identified fusion as a priority investment area, is developing a roadmap targeting initial operation of ITER in 2034, and projects total public- and private-sector investment through fiscal 2040 at approximately ¥3.1 trillion.
ITER, JT-60SA, and Kyoto Fusioneering's project are cited as the three key projects for identifying fusion-related stocks, with companies involved in ITER-related components, as well as large and small- and mid-cap Japanese stocks, attracting attention. There are two main technological approaches, magnetic confinement and laser confinement, and stocks are organized based on which approach they are involved in.
Heavy-industry and equipment manufacturers are identified as leading stocks. Mitsubishi Heavy Industries, IHI, and Nippon Steel play central roles in receiving orders for and manufacturing components for the ITER project, while Fujikura, Furukawa Electric, and Sumitomo Electric Industries are also considered important for their superconducting wire materials. Hamamatsu Photonics is introduced as a laser-related stock, while Toyo Tanso is cited for its involvement in components used inside fusion reactors.
Many overseas fusion companies are unlisted, leading to the view that indirect investment through Japanese companies is the more realistic approach. Helion and Commonwealth Fusion Systems (CFS) are unlisted, while investment and business relationships with companies such as Fujikura have strengthened the supply of components for ARC.