Fusion Industry Association to bring inaugural Fusion Supply Chain Trade Show to Santa Fe

By Andrew Holland

Commercial fusion energy is no longer a line on the horizon, with a timeline that stretches to the theoretical. It is now an emerging, multi-billion-dollar global industry transitioning from laboratory experiments to commercial reality - at a pace that will bring this clean, safe, sustainable energy to market soon. Fusion, when fully operational with power plants across the country, will provide unlimited carbon-free, affordable energy that can meet ever-increasing energy demands; and can be built in New Mexico.

But as private fusion companies scale up to build the world's first pilot power plants, our greatest challenges are no longer just science, technology, and engineering, they are logistical. We need a robust, high-precision manufacturing supply chain, an expansive technical workforce, and the industrial infrastructure to build a completely new clean energy sector.

That is exactly why the Fusion Industry Association (FIA) is bringing our inaugural Fusion Supply Chain Trade Show to Santa Fe on June 23 and 24.

When looking across the map for place to anchor the foundation of this next-generation industry, New Mexico is making the case as the strategic choice. With investment and political support, the Land of Enchantment is positioned to become a national hub for the fusion supply chain and its workforce, provided state leaders act intentionally to seize the moment.

New Mexico already possesses an firm foundation for fusion leadership. For decades, Los Alamos National Laboratory and Sandia National Laboratories have served as global epicenters of science, plasma physics, and advanced engineering. The foundational science developed within these institutions continues to push the boundaries of what is possible in fusion.

Our work with the industry, shown in the FIA's annual supply chain report, tells us science alone cannot power a commercial industry. As fusion developers build out complex machinery, they require advanced manufacturing, high-tech components, specialized vacuum systems, and precision electronics. New Mexico's existing industrial ecosystem is perfectly built to fulfill these growing supply chain demands.

Furthermore, scaling this industry requires talent. From technicians and precision machinists to specialized engineers and plasma physicists, the workforce needs could hold development back. Fortunately, New Mexico's universities and community colleges are already central to cultivating the next generation of industry leaders. By anchoring the fusion ecosystem through these institutions, New Mexico can create high-wage, long-term careers that keep homegrown technical talent in the state.

While New Mexico has the raw ingredients to lead the fusion race, its economic incentives must evolve to attract and retain the highly capitalized startup companies driving this revolution. To ensure New Mexico capitalizes on this generational economic expansion, we encourage legislators and the next governor to focus on three critical policy updates to ensure there is a level playing field for fusion with all other emerging technology sectors.

1. Update the R&D Tax Credit for Startups: Research and development is the heartbeat of New Mexico's economy and the future of fusion. While the state's current R&D tax credit recognizes this, its parameters are largely incompatible with early-stage, capital-intensive startup companies, the exact companies New Mexico wants to attract for relocation and expansion. By updating the policy to allow companies utilizing Industrial Revenue Bonds (IRBs) to access the tax credit, and making the credit refundable, New Mexico can directly align its R&D incentives with building a global fusion supply chain.

2. Raise Limits on the Manufacturing Investment Tax Credit: If you want a tax credit that demonstrably works for both business and the state, look no further than this one. In May, the Legislative Finance Committee (LFC) produced a scorecard evaluating various state economic incentives. The Manufacturing Investment Tax Credit delivered the highest economic return on investment of any incentive reviewed: every single dollar issued in credits produced $1.39 in increased economic activity. To supercharge this success, the state should increase the per-company caps, expand the credit percentage beyond its current 5% value of qualified equipment, and provide for refundability that works to attract startup companies.

3. Make Speculative Buildings Possible and Affordable: One of the most immediate bottlenecks to furthering economic growth in New Mexico is a severe shortage of large, move-in-ready industrial spaces. Established fusion and advanced manufacturing companies cannot wait years for a ground-up build. Creating a targeted appropriation and policy solution to offset the outsized capital costs associated with constructing speculative ("spec") buildings is absolutely vital if New Mexico is to achieve its economic diversification objectives.

The global race to commercialize fusion energy is accelerating, and the states that build the supply chains will reap the economic rewards for the next century. New Mexico has the labs, the talent, and the scientific legacy to lead the charge. By modernizing its economic toolkit to match its immense scientific prowess, New Mexico can ensure that the world's clean energy future is built in the Land of Enchantment.

Andrew Holland is the Chief Executive Officer of the Fusion Industry Association (FIA), the unified voice of the private fusion energy industry.