Commonwealth Fusion Systems leans on magnets for near-term revenue
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Commonwealth Fusion Systems said on Thursday it would sell high-temperature superconducting magnets to Realta Fusion, the second in a string of deals that suggests the company will lean heavily on its magnet technology in the coming years to bring in much-needed revenue. “It’s the largest deal of this kind to date for CFS,” Rick Needham, the company’s COO, told reporters on a call.
Commonwealth Fusion Systems, or CFS, previously sold magnets to the WHAM experiment at the University of Wisconsin, with which fusion startup Realta collaborates closely. The physics behind WHAM underpins Realta’s approach to fusion power, which is known as a magnetic mirror reactor. In a magnetic mirror, plasma is confined into a shape that resembles two 2-liter soda bottles connected at the base. On each end, powerful magnets punch the plasma and force it back toward the center. Weaker magnets encircle the middle of the bottle shape. To make a more powerful reactor, Khosla-backed Realta would only need to expand the middle section, and because those magnets are less powerful, they’re cheaper. Per kilowatt-hour costs should fall as Realta’s reactors increase in size. CFS is pursuing another form of magnetic confinement fusion called a tokamak. In a tokamak, D-shaped magnets cast powerful fields to keep plasma circulating in a doughnut-like shape inside. Over the years, the company has refined its magnets in pursuit of putting electrons on the grid from Arc, its future commercial-scale reactor that’s slated to be built in Virginia. Both CFS’ and Realta’s existence stem from the magnets themselves. CFS was founded in 2018 after scientists at MIT realized that a new class of commercially available high-temperature superconductors could underpin a viable tokamak design. Realta was founded a few years later when physicists at the University of Wisconsin “saw that there was a new technology, a game changer that would enable us to go back to the [magnetic] mirror and avail of those engineering advantages that the concept has,” co-founder and CEO Kieran Furlong said. Techcrunch event Disrupt 2026: The tech ecosystem, all in one room Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $400. Save up to $300 or 30% to TechCrunch Founder Summit 1,000+ founders and investors come together at TechCrunch Founder Summit 2026 for a full day focused on growth, execution, and real-world scaling. Learn from founders and investors who have shaped the industry. Connect with peers navigating similar growth stages. Walk away with tactics you can apply immediatelyOffer ends March 13. San Francisco, CA | October 13-15, 2026 REGISTER NOW In addition to the Realta and WHAM deals, CFS has also licensed its high-temperature superconducting magnet technology to Type One Fusion, which is working on a third type of reactor design known as a stellarator. While the latter deal doesn’t include CFS building actual magnets for the company, it could lead to that one day, Christine Dunn, CFS’ head of external communications, told TechCrunch. The deals will help CFS pay off its investment in magnet manufacturing. The startup spent seven years and hundreds of millions of dollars building a factory capable of producing high-temperature superconducting tape designed to fusion-power specifications. So far, that material has gone toward building Sparc, the company’s demonstration reactor, which won’t turn on until later this year. There will be a gap until work begins in earnest on its commercial-scale power plant Arc. These deals keep the factory running in between. “With Spark now 70% complete, it was excellent timing to start supporting Realta with our magnet manufacturing,” Needham said. Because Realta and Type One are pursuing different reactor designs, CFS apparently doesn’t view them as directly competitive at the moment. In the marketplace, Realta and CFS are even further apart, with the former focusing initially on industrial applications that need large amounts of heat. To date, CFS has raised nearly $3 billion — a large chunk of all venture dollars raised by fusion startups. That’s put the company in an enviable position, giving it the means to build key facilities like its magnet factory before competitors can. The startup pitches these deals as a service to the broader fusion industry, making available technologies that would cost many millions to replicate. That’s certainly true, but it also gives it access to even more venture investment, even if it’s in a roundabout way. Topics Climate, Commonwealth Fusion Systems, fusion power, magnets, nuclear fusion, Realta Fusion, Startups Tim De Chant Senior Reporter, Climate Tim De Chant is a senior climate reporter at TechCrunch. He has written for a wide range of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, where he was founding editor. De Chant is also a lecturer in MIT’s Graduate Program in Science Writing, and he was awarded a Knight Science Journalism Fellowship at MIT in 2018, during which time he studied climate technologies and explored new business models for journalism. He received his PhD in environmental science, policy, and management from the University of California, Berkeley, and his BA degree in environmental studies, English, and biology from St. Olaf College. You can contact or verify outreach from Tim by emailing tim.dechant@techcrunch.com.
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