The commercial fusion sector is increasingly pivoting toward its national security roots. As startups strive to deliver usable power to the electrical grid, many are rediscovering the defense applications that originally underpinned the industry’s creation during the Cold War era.
This strategic shift has accelerated as venture capital directed toward climate technology has slowed. Fusion projects are capital-intensive, and traditional investors have welcomed alternative revenue streams from the defense sector. Meanwhile, military interest in directed-energy weapons has surged due to the changing nature of modern warfare driven by drone proliferation.
Conventional air defense systems, designed for larger and fewer manned aircraft, often prove inefficient against swarms of low-cost drones. High-profile incidents, such as a recent cost disparity where a multi-million dollar interceptor missile was used to shoot down a consumer-grade drone, highlight the need for more economical solutions. Laser weapons offer a viable alternative by delivering rapid, low-cost engagements powered by onboard electricity rather than single-use ordnance.
Laser-based fusion startups are uniquely positioned to support these defense goals. Xcimer, a Denver-headquartered company specializing in laser fusion, recently announced a partnership and investment from RTX, the parent company of defense contractor Raytheon. Under the agreement, Xcimer receives funding through RTX Ventures, allowing the defense giant to explore the application of Xcimer’s high-powered lasers for military purposes.
Xcimer currently operates Phoenix, which it describes as the world’s largest privately owned laser system. While the system’s output is an order of magnitude lower than what will be required for commercial energy production, it is sufficiently powerful to attract defense attention. The company plans to use the technology to build a fusion power plant where lasers compress fuel targets to induce atomic fusion.
Xcimer is not the only firm bridging this gap. 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 has also broken ground on a demonstration facility in New Mexico, situated near the Sandia and Los Alamos National Laboratories.
Although the primary objective of the Pacific Fusion facility is to demonstrate net-positive energy generation, the resulting fusion reactions will be significantly more powerful than those used in current government nuclear stockpile stewardship programs. Keith LeChein, the company’s co-founder and chief technical officer, acknowledged the dual utility of the project.
“It turns out that the facility that we’re building also has utility in this world-leading defense application,” LeChein said. Carrie von Muench, Pacific Fusion’s co-founder and chief operating officer, noted that defense applications were a constant consideration throughout the company’s development. Both founders bring extensive experience from national labs, including Sandia, Lawrence Livermore, and the NNSA.
While fusion power has evolved substantially since its origins in weapons research, the renewed collaboration between the defense industry and private fusion startups represents a timely convergence. These partnerships provide essential financial support and validation for companies working toward the ultimate goal of clean, abundant energy.
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