TechCrunch Startup News Struggling fusion power company General Fusion to go public via $1B reverse merger
Jan 23, 2026
General Fusion is making waves with a $1 billion reverse merger amid previous financial struggles and layoffs. They aim to use the $335 million from this deal to finalize their Lawson Machine 26 reactor. This innovative machine employs magnetized target fusion, contrasting with traditional inertial confinement, to reduce costs significantly. While their scientific breakeven target has shifted to 2028, the growing demand for fusion power, driven by data centers and electrification, raises hopes for commercial viability despite ongoing technological challenges.
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Public-Market Lifeline Secures Big Funding
- General Fusion will go public via a reverse merger with Spring Valley 3 and could receive up to $335 million from the transaction.
- The deal values the combined company at about $1 billion and follows prior fundraising struggles and a $22 million lifeline.
Funding Targets Demonstration Reactor
- General Fusion will use the funds to complete its demonstration reactor, the Lawson Machine 26 (LM26).
- LM26 uses magnetized target fusion and aims to reach breakeven, now targeted for 2028.
Unconventional Compression With Liquid Lithium
- LM26 compresses fuel with steam-driven pistons and a liquid lithium wall instead of lasers or superconducting magnets.
- The lithium then transfers heat through a heat exchanger to generate steam and spin a generator.