Fusion energy startups deepen ties with defense sector
As climate tech funding stalls, fusion power startups are increasingly partnering with defense companies, whose growing interest in laser weapons against drones makes fusion's laser technology valuable. Xcimer and Pacific Fusion have both recently struck defense-related deals.
Fusion power startups are reconnecting with the defense industry that helped give birth to the field decades ago. While the ultimate goal for these companies remains delivering clean electricity to the grid, a slowdown in climate tech investment has pushed them to look for additional funding sources — and defense money is proving attractive.
Drones change the calculus
The defense sector has studied laser weapons for years, but interest has surged as drones increasingly dominate modern warfare. Traditional air defense systems were built to counter larger, less numerous piloted aircraft, not swarms of cheap drones. About a decade ago, a U.S. ally famously used a $3 million Patriot missile to shoot down a $200 consumer drone — effective, but wildly inefficient. Lasers offer a cheaper alternative, firing repeatedly using electricity from a generator, ship reactor, or engine, rather than a single costly missile per shot.
Recent partnerships
Last week, laser-based fusion startup Xcimer announced a partnership with and investment from RTX, the conglomerate that owns defense contractor Raytheon. Xcimer receives funding from RTX Ventures, while RTX gains a chance to explore military applications for Xcimer's powerful lasers. The Denver-based company operates what it describes as the world's largest privately owned laser system, intended eventually to power a fusion plant that compresses fuel targets until they fuse.
Separately, Pacific Fusion signed a memorandum of understanding last month with the National Nuclear Security Administration to collaborate on high-energy-density fusion experiments. The company recently broke ground on a demonstration facility in New Mexico, near the Sandia and Los Alamos national laboratories. The reactions produced there will exceed the power of those currently used in government nuclear weapons testing.
Pacific Fusion's leadership says defense applications were part of the company's thinking from the start, noting that its chief technical officer previously worked at Sandia, Lawrence Livermore, and the NNSA before co-founding the company.
