Japanese space startup Letara has raised new funding worth 2.6 billion yen, approximately $16 million, to expand beyond developing small-satellite thrusters into larger rocket systems aimed at the space, defense, and security markets. Shota Hirai, the company’s co-CEO, said the funding would help it move from technology demonstration to developing hybrid rocket systems designed for multiple applications.
The round comes as Japan is making major investments in the space sector and easing restrictions related to defense exports, as part of efforts to build a globally competitive domestic aerospace industry. Letara was founded in 2020 after being spun out of Hokkaido University, where co-CEOs Landon Thomas Kamps and Hirai began their research into rocket propulsion.
Funding to Expand the Technology’s Scope
The round was led by Headline Asia, JIC Venture Growth Investment, and Incubate Fund, with participation from strategic investors NES (Networked Energy Services) Corporation, Toyota Group subsidiary Toyoda Gosei, and the Frontier Innovations investment fund, managed by Frontier Innovations and supported by the Japan Aerospace Exploration Agency (JAXA).
Letara initially focused on developing satellite thrusters, but it now targets satellite manufacturers and operators, launch companies, and governments. The company considers commercial satellites to be the largest market for in-orbit propulsion systems, while Japanese government demand for rocket systems is increasing. It said it has already received orders from rocket and satellite companies and the Japanese government, without disclosing the value of those contracts.
How Does Letara’s Technology Work?
The company relies on a hybrid rocket design that separates the solid fuel from the liquid oxidizer required for combustion. The solid fuel is made from readily available, low-cost materials such as plastic and rubber. Letara then uses a proprietary manufacturing process to mix, shape, and compress these materials to ensure reliable ignition and consistent combustion.
The company says this approach could provide greater thrust and less waste than conventional hybrid designs that use more expensive paraffin wax. The technology focuses on addressing three problems that have limited the spread of hybrid propulsion: achieving sufficient thrust, maintaining performance, and controlling the combustion process.
What Is Changing in Practice?
Letara aims to use the technology in launch vehicles and propulsion systems for larger spacecraft, including vehicles that need to travel from low Earth orbit to geostationary orbit. Hirai explained that these missions require high thrust, particularly when crossing the Van Allen radiation belt quickly, while demand for launch vehicles is also growing.
The company is not operating in a market free of competition. Japan’s Interstellar Technologies, China’s Galactic Energy, South Korea’s InnoSpace, and Singapore’s Equatorial Space are developing hybrid rocket propulsion technologies. Germany’s HyImpulse and Australia’s Gilmour Space, along with other U.S. companies, are also working on competing propulsion and launch systems.
The Next Step Before Commercial Expansion
The next major milestone is to conduct an in-orbit system ignition test in cooperation with a partner outside Japan. After that, Letara will need to build a repeatable manufacturing process supported by quality controls and a reliable supply chain for fuel and tanks so that it can produce on a larger scale.
The company also sees the potential to use recycled plastic as fuel in the future, but it explained that this option requires further testing and development. This means the new funding expands the targeted scope of applications, but does not eliminate the technical and manufacturing challenges that must be overcome before turning the company’s research and demonstration projects into a broad commercial business.