General Fusion to go public via $1B SPAC merger

General Fusion has announced plans to go public through a reverse merger—a method for a private company to go public by merging with a public shell company—with Spring Valley III, a special purpose acquisition company (SPAC). The transaction will value the combined company at about $1 billion, according to General Fusion. If the deal closes as planned, the fusion energy startup could receive up to $335 million from the transaction.

The move marks a significant turnaround for the company, which was founded in 2002 and had previously raised over $440 million. Last year, General Fusion struggled to raise funds, laying off at least 25% of its staff before securing a $22 million lifeline investment to stay afloat. The potential proceeds from the SPAC merger would represent more than double the amount the company was seeking to raise before landing that lifeline.

General Fusion intends to use the capital to complete its LM26 demonstration reactor. The device uses magnetized target fusion, an approach that compresses plasma to fuse atoms and release energy. By using steam-driven pistons and liquid lithium rather than expensive lasers or superconducting magnets, the company hopes to build a fusion power plant for less money. General Fusion is aiming to reach scientific breakeven—the point where a fusion reaction generates more power than required to start it—in 2028, representing a shift from its previous target of 2026.

The company’s plans are supported by rising energy demands. According to BloombergNEF, data centers are expected to consume nearly 300% more power by 2035. Additionally, broader electrification trends could increase overall electricity demand by up to 50% by 2035. General Fusion is not the first in its sector to tap public markets; competitor TAE Technologies recently announced a merger with Trump Media & Technology Group in a deal valuing the combined company at more than $6 billion. Meanwhile, Spring Valley III’s sponsor previously took NuScale Power public, though that company’s stock price has since fallen more than 50% from its peak. Spring Valley is also currently working to complete a merger with Eagle Energy Metals.

Why it matters

General Fusion is betting that the rising energy appetite of data centers will provide the commercial viability needed to sustain its technology, using the SPAC merger to bridge the financial gap to its 2028 scientific breakeven goal.