CATL leads hundreds of millions in nuclear fusion startup Beta Fusion

CATL's first nuclear fusion bet puts the world's largest battery maker on a path to supplying hundred-megawatt clean power within eight years.

CATL (HKEX: 3750), the world's largest power battery maker, led a seed funding round worth several hundred million yuan in Beta Fusion, marking its first investment in the nuclear fusion sector, according to a report by China Star Market on June 11. The startup, founded on Dec. 29, 2025, with a registered capital of 1 million yuan ($147,600), aims to achieve 50 to 100 megawatts of grid-connected power generation within six to eight years.

"CATL's investment in Beta Fusion aligns with its broader vision of becoming a green energy provider," founder Robin Zeng said in 2024, adding that managing zero-carbon grids could be 10 times larger than the EV battery business. Beta Fusion's legal representative and CEO, Cao Zhiping, is a young scientist specializing in the pulsed field reversed configuration fusion technology route — the same approach used by U.S. fusion company Helion Energy, which signed an agreement with Microsoft in 2023 to supply power from its first 50-MW plant by 2028.

Beta Fusion's core team comes from China's top fusion research institutes and has worked on the design and engineering of major national science facilities, according to company materials. The field reversed configuration, or FRC, route is considered the most aggressive, fastest, and riskiest technology choice in the fusion industry, China Star Market reported. CATL's ample cash position supports such frontier bets: the company posted first-quarter revenue of 129.13 billion yuan, up 52.45% year-on-year, and net profit of 20.74 billion yuan, up 48.52% year-on-year. Its May battery installations reached 33.08 GWh, giving it a 46.14% market share in China, according to the China Automotive Battery Innovation Alliance.

The investment comes as surging AI computing power drives electricity consumption, with data centers demanding hundred-megawatt-scale clean power. Nuclear fusion, which produces zero pollution and uses nearly unlimited raw materials, has been included in China's 15th Five-Year Plan. CATL is not the first Chinese new-energy company to enter fusion: EV maker Nio invested 995 million yuan in fusion startup Neo Fusion in 2023 for a 19.9% stake. Citi recently raised CATL's target price to HK$888, expecting the company's profit to reach 100 billion yuan this year. CATL shares traded at HK$663 on June 11, implying roughly 34% upside to that target.

This article is for informational purposes only and does not constitute investment advice.