California is continuing to position itself as a national leader in fusion energy research and development, according to state officials and recent studies. Investments from both the public and private sectors, new legislation, and collaborations among universities, laboratories, and industry partners are advancing the state’s clean energy technology sector.
Governor Gavin Newsom highlighted California’s role in the sector, stating: “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 report from the San Diego Regional Economic Development Corporation found that California houses over one-third of all U.S.-based fusion companies. Since 2021, these companies have attracted more than $2.2 billion in combined investments from both public and private sources. The report also projects that depending on scientific advancements and commercialization success, the economic impact of this industry could grow to between $48 billion and $125 billion.
Last month saw California’s first statewide convening focused on fusion energy. The event was hosted by General Atomics, Lawrence Livermore National Laboratory, University of California San Diego, along with other state agencies. Discussions at the meeting included new legislation supporting fusion energy development—such as recently signed laws—state programs for funding research efforts, regional hubs for innovation in fusion technology, as well as news about $8 million in grants awarded by the University of California system to its laboratories.
In November 2025, Governor Newsom signed Senate Bill 80 (SB 80), authored by Senator Anna Caballero (D-Merced). The bill established the Fusion Research and Development Innovation Initiative with an initial allocation of $5 million for research efforts aimed at accelerating project commercialization within this field.
The sector currently supports around 4,700 jobs statewide with an annual economic output estimated at $1.4 billion. Notably, California hosts two leading U.S. research centers: DIII-D National Fusion Facility in San Diego—the largest magnetic-confinement user facility—and Lawrence Livermore National Laboratory where researchers achieved a major milestone with laboratory fusion ignition in December 2022.
In terms of broader clean energy use within California’s economy: In 2023 approximately two-thirds of electricity consumed came from clean sources—a record among large global economies—and on many days throughout this year all electricity used was generated from renewable resources for part of each day.
Fusion power offers prospects for a safe source of carbon-free electricity that could supplement existing renewable sources as technological advances continue to be made.
California continues to demonstrate strong overall economic growth driven by innovation across sectors such as business startups and manufacturing while maintaining leadership roles nationally in agriculture and venture capital investment.
