General Fusion to Go Public in $1 Billion Deal Through Reverse Merger

The fusion energy company General Fusion said it would go public through a reverse merger that values the combined entity at about $1 billion. The move follows a tough year in which the company laid off employees and received $22 million in investment to help keep it afloat.

The company plans to merge with Spring Valley III, a special purpose acquisition firm, and will raise money from big investors as well. If the deal closes, General Fusion could get up to $335 million, much more than the funding it was aiming for last year.

General Fusion, which was founded in 2002, has raised over $440 million to date. The fresh capital will be used to complete its demonstration reactor, called Lawson Machine 26. The system is based on magnetized target fusion, which smashes fuel pellets together to produce a release of energy. Rather than lasers or enormous magnets, the approach uses steam-powered pistons to create pressure and liquid lithium instead as a kind of fuse.

The company had previously said it hoped to achieve scientific breakeven in 2026, at which point the reaction would be giving off more energy than it consumed. It was enough of a shake-up that the target date was pushed back to 2028.

Spring Valley has previously brought energy companies to the public markets, among them nuclear startup NuScale Power. General Fusion will be in rare company among fusion companies opting for the public markets during a time of increasing power demand from data centers, electric vehicles and electrification that has enhanced interest in new energy sources.