: Iteration of magnetic materials drives industry upgrades, optimistic about demand in the magnet industry.

Huajin Securities released a research report stating that magnets, as the most valuable part of fusion systems, are currently undergoing the process of low-to-high temperature technology verification and evolution, and they are optimistic about the demand for the magnet industry brought by the capital expenditure cycle of nuclear fusion. They suggest paying attention to the core supply chain manufacturers in the magnet sector: low-temperature superconductors, high-temperature superconductors, and niobium-tantalum core suppliers. Key points of Huajin Securities are as follows: Policy support and capital expenditure drive, fusion industry enters acceleration period By 2025, major countries around the world will intensively introduce nuclear fusion policies, marking the shift of technological competition from laboratory research and development to industrial layout and regulatory framework construction. Domestically, policy support for controlled nuclear fusion is being established at the national level, optimizing regulatory processes, improving laws and regulations, and focusing on technological research and development directions to provide clear guidance. Low-temperature superconductors are relatively mature, high-temperature superconductors may become mainstream in the future Magnet materials are the core foundation for achieving stable magnetic field confinement in fusion devices. Currently, superconducting magnet materials have formed a pattern of parallel development between low-temperature superconductors (NbTi, NbSn) and high-temperature superconductors (REBCO). Low-temperature superconducting materials support the operation of existing fusion devices due to their advantages in industrial applications, while high-temperature superconducting materials, with superior adaptability to extreme environments, are key to the breakthrough of next-generation high-field fusion technologies. Magnet systems are the core cost item for fusion projects In the ITER project using low-temperature superconductors, components account for 86% of the costs, with magnets accounting for 28%, making them the most expensive core components. The main reason is that the niobium-based superconducting wires (NbTi and NbSn) used in ITER rely on high-cost liquid helium for continuous cooling. In high-temperature superconducting projects, magnet costs are further increased. For example, in the high-temperature superconducting Tokamak ARC project, the magnet system accounts for 46% of the costs. Future Tokamak devices will trend towards compact and high-temperature superconductors, with industry demand expected to significantly increase. The market size for second-generation high-temperature superconducting tapes for global controlled nuclear fusion devices is estimated to be 300 million yuan in 2024, and is expected to reach 4.9 billion yuan by 2030, with a compound annual growth rate of 59.3% from 2024 to 2030. Risk warning: project approvals are not as expected, capital expenditures are not as expected, fusion safety risks, fluctuations in raw material prices.