General Fusion to Go Public via $1B Reverse Merger with Spring Valley III

General Fusion, the fusion energy startup that faced financial distress last year, is going public through a reverse merger with special purpose acquisition company Spring Valley III, valuing the combined entity at approximately $1 billion. The transaction, expected to close in 2026, could raise up to $335 million for General Fusion, significantly more than the $22 million lifeline it received in 2025. The company plans to use proceeds to complete its LM26 demonstration reactor, which employs steam-driven pistons and liquid lithium to achieve inertial confinement fusion—avoiding costly lasers or magnets. General Fusion previously raised over $440 million since its 2002 founding. It aims for scientific breakeven by 2026, though commercial viability remains unproven. The deal follows a broader trend of fusion companies pursuing public listings amid rising global electricity demand driven by data centers, EVs, and electrification. Spring Valley III has prior experience taking energy firms public, including NuScale Power and Eagle Energy Metals.