California is strengthening its role as a leader in fusion energy research and development, with recent investments and legislation supporting the growth of this emerging clean energy sector. The state has become a hub for technological innovation, attracting significant public and private funding and fostering collaboration among universities, national laboratories, industry partners, and state agencies.
Governor Gavin Newsom highlighted the importance of these efforts: “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.”
A new study by the San Diego Regional Economic Development Corporation (EDC) found that California hosts over one-third of all U.S.-based fusion companies. Since 2021, more than $2.2 billion in combined public and private investment has been directed toward the sector. The report suggests that if scientific progress continues and projects are successfully commercialized, the economic impact could reach between $48 billion and $125 billion.
In November 2025, Governor Newsom signed Senate Bill 80 to accelerate fusion energy research in California. Authored by Senator Anna Caballero (D-Merced), SB 80 established the Fusion Research and Development Innovation Initiative with $5 million allocated to support advancements in technology capabilities needed for commercialization.
The state recently held its first major convening on fusion energy. Hosted by General Atomics, Lawrence Livermore National Laboratory, University of California San Diego, University of California’s Office of the President, California Energy Commission, and GO-Biz (the Governor’s Office of Business and Economic Development), this event provided updates on new legislation supporting fusion research as well as an announcement from the University of California awarding $8 million in grants to UC laboratories to further accelerate research.
California’s two leading facilities—the DIII-D National Fusion Facility in San Diego (the largest magnetic-confinement user facility in the country) and Lawrence Livermore National Laboratory—are at the forefront of national efforts. In December 2022 researchers at Lawrence Livermore achieved a laboratory milestone: the first successful ignition using inertial-confinement fusion.
Currently employing around 4,700 people statewide with an annual economic output estimated at $1.4 billion, California’s fusion sector supports both established institutions and startups.
In terms of overall clean energy production, two-thirds of California’s electricity came from clean sources during 2023—a level unmatched by any other large economy globally—and portions of each day saw electricity generated entirely from renewable resources.
Fusion is seen as a promising solution for providing safe, carbon-free electricity with long-term potential to supplement existing renewable infrastructure while contributing to climate goals both within California and beyond.
The state’s broader economy remains robust across various sectors including agriculture, manufacturing, tourism spending—which has reached record highs—and business formation driven by ongoing innovation.
