Jerusalem, 22 October, 2026 (TPS-IL) — Israel has a limited window to position itself in the emerging global nuclear fusion industry, which could be worth hundreds of billions of dollars, the Ministry of Energy and Infrastructure said in a strategic report proposing government investments of up to NIS 2 billion ($640 million) in a national fusion program.
The report, prepared by the ministry’s Policy Planning and Strategy Division and the Office of the Chief Scientist, outlines a plan to expand Israel’s research capabilities, train specialists and help Israeli companies supply technologies to international fusion developers.
“Given the continuous rise in energy demand and the need for solutions to generate clean, reliable, and accessible electricity, nuclear fusion holds the potential to be a true breakthrough in meeting global electricity demand over the medium to long term,” said Dr. Shahar Dolev, a senior director in the ministry’s Policy Planning and Strategy Division.
The report argues that the next few years will be critical as governments and private companies develop the technologies, standards and supply chains that could shape the industry. Israel could draw on existing expertise in high-powered lasers, advanced materials, artificial intelligence (AI), robotics and power electronics, much of it developed in the defense and high-tech sectors.
Nuclear fusion generates energy by combining light atomic nuclei, typically hydrogen isotopes, to form heavier nuclei. Unlike nuclear fission, which splits heavy atomic nuclei, fusion requires extreme operating conditions to sustain the reaction. If those conditions are no longer maintained, the reaction stops. Fusion power generation does not directly emit greenhouse gases and is expected to produce less long-lived radioactive waste than conventional fission-based nuclear power.
A Race to Enter Fusion
Despite significant technical challenges, investment in fusion has accelerated. More than $14 billion has flowed into the global fusion industry since 2021, including approximately $4.5 billion in the past year, according to the report. It projects that the first commercial fusion power plants could connect to electricity grids during the 2030s, with a global market potentially worth hundreds of billions of dollars emerging between 2040 and 2050.
Israel already has a foundation for entering the sector. The ministry established the Institute for Nuclear Fusion and Hot Plasma about four years ago. Israeli companies including nT-Tao, which is developing a compact fusion reactor, and FusionMantle, which develops reactor components, are also pursuing fusion-related technologies.
However, the report identifies several obstacles to expanding Israel’s role, including a shortage of dedicated experimental facilities and trained specialists in plasma and nuclear physics, as well as the absence of regulations tailored to the industry.
It proposes three investment tracks. The most modest would allocate NIS 50 million to NIS 100 million ($16 million-$32 million) over five years to expand existing research and training. A second option would invest NIS 500 million to NIS 1 billion ($161 million-$320 million) in a dedicated research center. The most ambitious option would commit NIS 1 billion to NIS 2 billion ($320 million-$640 million) over seven to 10 years to establish a comprehensive national program.
The largest program would establish a national authority, upgrade research facilities, expand academic training and assess the feasibility of an experimental reactor through international cooperation.
The report also calls for closer collaboration with countries including the United States and Germany. It warns that without timely government action, Israel could miss the opportunity to become a supplier of technologies and components to an emerging global energy industry.
