CATL, the world’s largest manufacturer of electric vehicle batteries, has made its first investment in the nuclear fusion industry by leading a seed funding round for Chinese startup Beta Fusion, according to a report by Chinese media outlet China Star Market.
The report, published on June 11 and citing people familiar with the matter, said the funding round was worth several hundred million yuan.
Founded in December 2025, Beta Fusion is focused on developing and commercializing controlled nuclear fusion technology. The company is led by founder and Chief Executive Cao Zhiping, a scientist known for his work on field reversed configuration (FRC) fusion technology.
Ambitious Power Generation Goals
According to company information, Beta Fusion aims to achieve between 50 megawatts and 100 megawatts of grid-connected power generation within six to eight years.
The company is pursuing the same FRC technology pathway as U.S.-based fusion company Helion Energy. China Star Market described the approach as “the most aggressive, fastest, and riskiest technology choice” among current fusion development routes.
Fusion energy has attracted increasing attention worldwide because it promises carbon-free electricity using abundant fuel sources. Supporters believe the technology could play a major role in meeting future energy demand if commercial deployment becomes viable.
Growing Interest in Clean Energy Technologies
CATL’s investment aligns with its broader strategy of expanding beyond battery manufacturing. In 2024, company founder Robin Zeng said CATL aimed to transform itself into a green energy provider and suggested that operating zero-carbon power grids could eventually become a larger business than supplying batteries for electric vehicles.
Demand for large-scale clean electricity has also increased as artificial intelligence applications and data centers require more power.
China has identified nuclear fusion as a strategic technology area in its national development plans, encouraging greater investment and research in the field.
Part of a Broader Industry Trend
CATL is not the first company from China’s new energy sector to invest in fusion technology. In 2023, electric vehicle maker Nio invested 995 million yuan in fusion startup Neo Fusion for a 19.9% stake.
The investment comes as CATL continues to post strong financial results. The company reported first-quarter revenue of 129.13 billion yuan and net profit of 20.74 billion yuan, both showing substantial growth from a year earlier.
CATL also remained the largest supplier of power batteries in China in May, accounting for 46.14% of the market, according to data from the China Automotive Battery Innovation Alliance.
Source: EVMagz