Xeonova, a nuclear fusion technology company, has raised a nine-figure RMB sum in a pre-Series A funding round, according to 36Kr, citing sources familiar with the matter. The round was led by Ant Group, with participation from Hidden Hill Capital, Zijin Mining, Bian Era Technology Holdings, Soul Capital, Hua Capital, Luen Mei Quantum, and Pagoda Innovation. Existing investors CMBC International and Renfa New Energy also increased their stakes.
The funds will be used to enhance the performance of Xeonova’s ongoing reactor project, advance key technologies, and expand its team as the company continues to develop its proprietary field-reversed configuration (FRC) fusion system with the goal of commercialization.
Founded in March 2024 under the auspices of the University of Science and Technology of China, Xeonova builds on a fusion concept first proposed more than a decade ago by professor Sun Xuan. Sun developed the advanced field-reversed mirror (FRM) pathway, and since 2013, his research group has continued refining and validating the approach, with findings published in multiple peer-reviewed journals.
Backed by over a decade of R&D and an established research base, Xeonova has built advantages in technological maturity, team capability, and execution. Sun, who has spent more than 20 years in fusion science, has worked across fusion laboratories, universities, and private companies in both China and the US. The team includes researchers from institutions such as the University of Science and Technology of China and Princeton University, bringing expertise across experimental physics and applied engineering.
According to Sun, the FRM configuration benefits from a linear reactor design that requires lower investment, offers structural simplicity, and allows easier maintenance and flexible control. These traits, he said, make it a potentially efficient, stable, and cost-effective route to commercial fusion energy.
As the global energy transition accelerates, controlled nuclear fusion is increasingly viewed as a cornerstone of the clean energy future, given its high energy density, abundant fuel supply, and intrinsic safety. A report by Keytone Ventures projects that the global fusion market will grow from USD 296.4 billion in 2022 to USD 395.1 billion by 2027.
Surging computing demands from artificial intelligence have also intensified attention on energy consumption, especially at data centers, positioning fusion power as a strategic priority for major tech firms. Microsoft has invested in Helion Energy and signed a 50-megawatt power purchase agreement, while Google has partnered with Commonwealth Fusion Systems on a 200-megawatt project. Policy momentum is also building: China’s 15th five-year plan designates nuclear fusion as a national priority, while the US and Germany have both launched dedicated programs and funding initiatives.
Multiple fusion approaches are now advancing in parallel. While tokamak-based systems remain dominant, they face persistent engineering challenges, including high construction costs, complex designs, and density limitations. The FRM configuration offers an alternative that’s simpler, cheaper, faster to iterate, and more adaptable. Progress across the field has also been rapid: Helion Energy has built seven generations of its reactor and aims to achieve net energy gain this year, with plans to deliver 50 MW of power by 2028. Meanwhile, TAE Technologies targets commissioning a hydrogen-boron fusion plant around 2030.
Xeonova expects its reactor facility to be completed and achieve first plasma discharge by year’s end, marking a key proof of engineering feasibility for its advanced FRM technology. The company said the milestone will lay the foundation for higher-performance reactors and advance China’s linear fusion pathway.
In parallel, Xeonova is exploring early commercial applications, including supplying diagnostic and heating components to universities and research institutes, as well as pursuing use cases such as neutron sources and isotope production. The company said these initiatives will help establish a foundation for near-term commercial opportunities in the fusion energy ecosystem.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Yuan Silai for 36Kr.