Fusion energy companies are revisiting their historical connections to national security as they seek new funding sources and applications beyond the traditional climate tech sector. The fusion industry originally emerged from Cold War-era research into thermonuclear science, and defense-related interests have remained relevant, exemplified by the National Ignition Facility's fusion experiments supporting security objectives for over 25 years.
Recent shifts in venture capital funding for climate technology have prompted fusion startups to explore defense partnerships. The defense sector's growing interest in laser weapons—driven by the need to counter inexpensive and numerous drones—aligns well with fusion startups developing laser-based reactor technologies. Unlike costly single-use missiles, laser weapons offer rapid, electricity-powered defense options.
One example is Xcimer, a Denver-based fusion startup that operates one of the largest private laser systems globally. Xcimer recently secured investment from RTX Ventures, part of the defense conglomerate that includes Raytheon. This partnership provides Xcimer with funding while allowing RTX to investigate applications of Xcimer's high-powered lasers for defense purposes.
Another fusion company, Pacific Fusion, has signed a memorandum of understanding with the National Nuclear Security Administration to collaborate on high-energy-density fusion experiments. Pacific Fusion is constructing a demonstration facility in New Mexico near major national laboratories. While its primary goal is to prove net power generation, the facility's fusion reactions also have significant potential for national security applications, surpassing current government capabilities in nuclear weapons testing.
Leaders at Pacific Fusion emphasize that defense applications have been integral to their mission. The company's co-founder and CTO, Keith LeChein, has a background at prominent national laboratories and the NNSA, underscoring the close relationship between fusion research and defense.
As fusion startups reconnect with defense interests, this renewed collaboration offers a promising avenue for advancing fusion technology and securing diversified funding. It also highlights the enduring strategic importance of fusion energy beyond its potential as a clean power source.