Fusion energy companies are revisiting their historical ties to national security as they pursue both clean power generation and defense applications. The fusion industry originated from Cold War-era research into thermonuclear science, and while the focus shifted toward climate tech in recent years, defense-related interests have remained relevant. A notable fusion experiment in 2022 at the National Ignition Facility, a center with longstanding national security roles, underscores this connection.
Recent challenges in climate tech funding have encouraged fusion startups to seek alternative sources of investment. The defense sector, particularly in its interest in laser weapons, has become a natural partner. Modern warfare’s increasing use of drones has exposed limitations in traditional missile-based air defense, which can be costly and inefficient. Laser weapons, powered by electricity rather than expensive missiles, offer a promising alternative.
Startups developing laser-driven fusion reactors are well-positioned to contribute to these defense technologies. For example, Xcimer, a Denver-based company operating one of the world’s largest private laser systems, recently announced a partnership with RTX Ventures, part of the Raytheon defense conglomerate. This collaboration provides Xcimer with funding while allowing RTX to explore applications of Xcimer’s laser technology.
Similarly, Pacific Fusion has established a memorandum of understanding with the National Nuclear Security Administration to collaborate on high-energy-density fusion experiments. The company is constructing a demonstration facility in New Mexico near key national laboratories. While the primary goal is to prove net power gain, the facility’s fusion reactions also have significant potential for defense-related nuclear research.
Executives at these startups emphasize that defense applications have been a consistent consideration in their development strategies. The renewed engagement between fusion startups and the defense sector offers a dual benefit: advancing fusion technology for energy production and providing critical support and funding from defense agencies. This synergy may accelerate progress in fusion power while addressing evolving defense needs.