Fusion power startups find new partners in the defense world

Fusion power startups are forming new alliances with the defense industry, capitalizing on the resurgence of defense-related applications for their technologies. Fusion, once an offshoot of Cold War-era atomic research, has found a renewed purpose as the sector grapples with scaling challenges and the drying-up of climate tech funding.

The defense industry has long been fascinated by laser weapons, and recent shifts in modern warfare have spurred renewed investment in this area. In particular, laser weapons promise to be more cost-effective than traditional missile systems, which are often wasteful due to size and inefficiency. Fusion startups with laser-based reactor designs are well-positioned to benefit from this trend.

A recent partnership between Xcimer, a Denver-based laser-based fusion startup, and RTX, a conglomerate that includes Raytheon, exemplifies this partnership. RTX will provide funding and explore potential uses for Xcimer's powerful lasers, which operate at a scale suitable for both power plants and military applications. Meanwhile, Pacific Fusion has signed a memorandum of understanding with the National Nuclear Security Administration (NNSA) to collaborate on high-energy-density fusion experiments.

With its recently opened demonstration facility in New Mexico, Pacific Fusion will test whether its technology can generate more power than it consumes, while also fulfilling its role as a defense-focused innovation hub. The defense industry's renewed focus on fusion power is not a mere coincidence. Many of the company's leaders have been involved in fusion research for years, and the sector's potential applications for military technology have always been on their radar.