Fusion Startups Partner With Defense to Power Innovation

The startups chasing fusion power just found powerful new partners to help make their dreams real.

Fusion energy companies are joining forces with defense contractors to develop advanced laser systems that could transform both clean energy and military technology. The partnerships bring crucial funding at a time when climate tech investment has slowed, while giving fusion startups a chance to prove their technology works.

Denver-based Xcimer Energy just announced a partnership with RTX, the defense giant that includes Raytheon. Xcimer operates the largest privately owned laser system in the world, a powerful setup they're testing on the path to building a fusion power plant. RTX gets access to cutting-edge laser technology, while Xcimer gains funding and a customer for their systems.

The defense angle makes sense when you look at modern warfare. Drones have completely changed the game, and traditional air defense systems weren't built to handle them. A decade ago, a U.S. ally spent $3 million on a Patriot missile to shoot down a $200 consumer drone. It worked, but the math was painful.

Laser weapons could flip that equation. Instead of firing expensive single-use missiles, laser systems fire quickly and cheaply using electricity from generators or ship engines. Fusion startups working with lasers are perfect partners for developing these systems.

Pacific Fusion is taking a similar path. The startup recently broke ground on a demonstration facility in New Mexico near two major national laboratories. While their main goal is proving they can generate more power than they consume, the facility has caught government attention for another reason.

The fusion reactions Pacific Fusion creates will be far more powerful than what the government currently uses for nuclear weapons experiments. "It turns out that the facility that we're building also has utility in this world-leading defense application," said Keith LeChein, the company's chief technical officer.

This wasn't an accident. Defense applications were "always on our mind," explained Carrie von Muench, Pacific Fusion's chief operating officer. LeChien previously worked at three major national security laboratories before co-founding the company.

The Ripple Effect

These partnerships do more than just fund fusion research. They create real deadlines and practical testing grounds for technology that could eventually power our homes and cities with clean energy. Defense needs push innovation forward faster, creating systems that work in the real world rather than just in theory.

The National Nuclear Security Administration is already working with Pacific Fusion through a formal agreement to collaborate on high-energy experiments. These relationships give fusion startups access to decades of government research and facilities while helping national laboratories stay on the cutting edge.

Fusion power emerged from Cold War weapons research, and its security roots never fully disappeared. The breakthrough 2022 fusion experiment that made global headlines happened at the National Ignition Facility, which has supported national security work for over 25 years.

Now fusion startups are coming full circle, embracing partnerships that honor the technology's origins while racing toward a clean energy future that benefits everyone.