Fusion Energy Startup DongSheng Fusion Secures Major Funding

Shanghai-based fusion energy innovator, DongSheng Fusion, has secured a significant funding round totaling hundreds of millions of yuan. The investment was co-led by CMC Capital's Huawen Qingneng Fund, alongside other prominent market-oriented funds and industrial capital. This capital infusion propels DongSheng Fusion forward in its ambitious mission to develop compact fusion power plants utilizing the deuterium-helium-3 (D-He3) fuel cycle.

Established in July 2025, DongSheng Fusion distinguishes itself within China's rapidly expanding fusion sector by exclusively pursuing the D-He3 route. This approach contrasts with the more common deuterium-tritium (D-T) reaction, offering distinct advantages. The D-He3 reaction generates minimal neutron radiation, significantly enhancing safety profiles and reducing the need for extensive, costly shielding. This characteristic is expected to facilitate easier regulatory approval and enable more flexible deployment options, potentially closer to urban centers or high-demand energy hubs like data centers.

The company has assembled a formidable team, drawing seasoned engineers and researchers from China's fusion industry, many with over a decade of experience in developing and implementing large-scale fusion devices. Furthermore, DongSheng Fusion has attracted top-tier international scientific talent from leading global universities and research institutions, underscoring its commitment to cutting-edge innovation.

Controlled nuclear fusion is widely recognized as the ultimate solution for reshaping the global energy paradigm. With scientific principles validated, the field is now entering a critical phase of engineering and commercialization. China's national development plans, including the "15th Five-Year Plan," have identified nuclear fusion as a key driver for new economic growth. The formal implementation of the 'Atomic Energy Law of the People's Republic of China' in January 2026 further signals strong governmental support for controlled thermonuclear fusion research and development.

DongSheng Fusion's technological advancements are centered on two core areas: high-temperature superconducting magnets and AI-driven plasma control. The use of advanced superconducting materials allows for more compact device designs and stronger magnetic confinement, crucial for plasma stability and fusion efficiency. Concurrently, the integration of sophisticated AI algorithms enables precise, long-term control and optimization of plasma operations. The company's first experimental device, codenamed 'Chenguang,' is progressing steadily, leveraging these dual technological pillars to accelerate the path toward engineering viability.

Gu Xiaoli, Partner at CMC Capital and head of the Huawen Qingneng Fund, commented on the investment, highlighting DongSheng Fusion's unique position. \"Fusion represents the ultimate solution for restructuring global energy systems and is a critical arena for strategic competition,\" Gu stated. \"DongSheng Fusion is the only leading private enterprise in China's fusion sector that benefits from the combined support of top universities, local government, and global research institutions. Their dual-driven model aligns perfectly with Huawen Qingneng Fund's strategy of deeply cultivating the clean energy industry chain.\" Gu further praised founder Professor Xu Min's rare combination of profound theoretical expertise and practical large-scale engineering experience, creating an almost unassailable competitive advantage in engineering capabilities.

The strategic choice of the neutron-free D-He3 technology is seen as a significant differentiator, potentially lowering regulatory hurdles and construction costs for commercial fusion power. This pathway opens up possibilities for safe deployment near population centers, offering a flexible and cleaner energy future. DongSheng Fusion's phased commercialization strategy, supported by institutions like Fudan University and the Shanghai Municipal Government, is expected to carve out a distinct niche in the clean fusion market, contributing to China's efforts to advance its fusion capabilities on the global stage.