Defense Collaborations Ignite New Partnerships for Fusion Power Startups

The field of fusion power is experiencing a revival of its original focus. While fusion companies aim to achieve grid-connected energy, many are rediscovering their roots in defense applications that were fundamental to the industry’s formation.
The fusion sector originated decades ago when scientists sought constructive applications for the technology behind thermonuclear weapons developed during the Cold War. Concerns related to national security have remained pervasive. A notable fusion power experiment in 2022 was conducted at the National Ignition Facility, which has been involved in national defense initiatives for over 25 years.
This trend has gained momentum as funding for climate technology has slowed. Although fusion startups have historically attracted a significant share of climate funding, the high costs associated with fusion means that investors are pleased when these companies branch out and discover additional financing avenues.
This is where the defense sector comes into play. As the defense industry has experimented with laser weapons for some time, interest has surged due to the evolving nature of modern warfare, particularly with the advent of drones. Conventional air defense systems have often struggled against smaller, cheaper drones, leading to inefficient scenarios, such as a $3 million missile being used to neutralize a $200 drone.
Laser weapons offer a more efficient alternative. They allow for rapid firing at a lower cost per shot by utilizing electricity from generators or ship engines instead of relying on expensive, one-time-use missiles.
Fusion startups focusing on laser technologies are becoming valuable collaborators in creating these advanced weapons. Recently, the fusion startup Xcimer announced a collaboration with RTX, a conglomerate that encompasses defense contractor Raytheon. Through this partnership, Xcimer will receive investment from RTX Ventures, while RTX will explore potential applications of Xcimer’s high-powered lasers.
Based in Denver, Xcimer claims to operate the largest privately-owned laser system in the world, which it aims to utilize for its power plant project. In this facility, lasers will target fuel elements, compressing them until fusion occurs, releasing energy. Although Xcimer’s current laser system, known as Phoenix, operates at a lower power compared to what will be needed for an energy plant, it is sufficiently powerful to attract interest from the defense sector.
Xcimer is not alone in exploring defense applications. Pacific Fusion recently signed a memorandum of understanding with the National Nuclear Security Administration (NNSA) to collaborate on high-energy-density fusion experiments.
The startup recently initiated construction on a demonstration facility in New Mexico, close to key national laboratories. While the primary aim is to showcase the ability to produce more energy than consumed, the facility will also serve additional purposes. The fusion processes conducted at Pacific Fusion’s site are expected to be significantly more potent than those currently employed for nuclear weapon testing.
“Our facility also has utility in this leading defense application,” said Keith LeChein, co-founder and CTO of Pacific Fusion, in a recent discussion.
While this may appear serendipitous, it’s intentional. Defense applications were always a consideration for the team, as expressed by Carrie von Muench, co-founder and COO. LeChein’s background includes time spent at various national laboratories, contributing to the company’s technical foundation.
Fusion power has evolved significantly since its inception by weapon scientists, yet its implications for national security remain relevant. This renewed focus on defense applications could provide a substantial leap forward for fusion startups willing to venture in this direction.



