Japan’s growing investment in space technology is creating new opportunities for domestic aerospace startups, and Sapporo-based Letara is aiming to take advantage of that momentum.
The company, which develops hybrid propulsion systems for spacecraft, has raised ¥2.6 billion, roughly $16 million, in new funding. Letara plans to use the investment to expand beyond small-satellite propulsion and develop larger rocket systems for space, defense, and security applications.
The funding round was co-led by Headline Asia, JIC Venture Growth Investments and Incubate Fund. Several strategic investors also participated, including Networked Energy Services, Toyoda Gosei and Frontier Innovations, an investment fund backed by the Japan Aerospace Exploration Agency (JAXA).
Source: Letara
Letara Wants to Scale Hybrid Rocket Technology
Letara was originally focused on propulsion systems for small satellites, but its ambitions have expanded as demand for commercial and government space capabilities grows.
Co-CEO Shota Hirai said the company intends to use its latest funding to develop hybrid rocket systems for a broader range of applications.
Rather than concentrating exclusively on satellite thrusters, Letara is now looking at larger propulsion systems that could eventually serve spacecraft, launch vehicles, defense programs and other security-related applications.
The company believes hybrid propulsion could offer advantages in areas where conventional rocket systems can be expensive or difficult to operate.
How Letara’s Hybrid Propulsion Works
Hybrid rockets use two different forms of propellant. A solid fuel is combined with a separate liquid oxidizer, which is required to produce combustion.
Letara’s approach uses relatively inexpensive materials, including plastics and rubber, as the solid fuel component.
The startup has developed a manufacturing process designed to mix, shape and compress these materials so they can ignite consistently and maintain stable combustion.
According to Letara, its technology is intended to address several longstanding challenges associated with hybrid propulsion, including generating sufficient thrust, maintaining consistent performance and controlling combustion.
The company believes its approach could provide higher performance while reducing waste compared with some existing hybrid rocket designs that rely on materials such as paraffin wax.
A Growing Global Space Propulsion Market
Letara is entering an increasingly competitive market.
The global hybrid rocket propulsion sector is projected to grow substantially over the coming years as demand increases for launch systems, satellite propulsion and other space technologies.
Several companies around the world are already developing competing propulsion technologies. These include Interstellar Technologies in Japan, InnoSpace in South Korea, Equatorial Space in Singapore, HyImpulse in Germany and Gilmour Space in Australia.
Chinese and US companies are also developing alternative propulsion and launch technologies.
That competition means Letara will need to demonstrate that its technology can move beyond experimental systems and become reliable enough for commercial production.
From Hokkaido University Research to a Space Startup
Letara’s origins can be traced back to research conducted at Hokkaido University by its co-CEOs Landon Thomas Kamps and Shota Hirai.
The researchers saw potential in hybrid rocket technology because of its relative simplicity and safety compared with some traditional propulsion approaches.
Letara was spun out of the university in 2020, initially focusing on propulsion systems for satellites.
Since then, the commercial space industry has expanded significantly, with private companies and governments increasing their investments in launch capabilities, satellites and space infrastructure.
Letara now wants to build on that growth by targeting a wider range of customers.
Space, Defense and Government Markets
The company is targeting satellite manufacturers and operators, launch companies and government organizations.
Commercial satellites represent an important potential market for Letara’s in-space propulsion technology. At the same time, Japan’s growing interest in domestic aerospace and defense capabilities could create additional opportunities.
Letara says it has already received orders from rocket and satellite companies as well as the Japanese government, although it has not disclosed the value of those contracts.
The company also sees potential demand for higher-thrust systems capable of supporting spacecraft traveling beyond low Earth orbit.
Moving spacecraft between different orbits can require significant amounts of propulsion, particularly when missions involve destinations such as geostationary orbit.
The Next Step Is an In-Orbit Test
One of Letara’s most important upcoming milestones will be an in-orbit firing test conducted with an overseas partner.
A successful demonstration would provide an important piece of evidence that the company’s propulsion technology can operate reliably in a real space environment.
However, demonstrating the technology is only one part of the challenge.
Letara will also need to develop consistent manufacturing processes, quality-control systems and a dependable supply chain for components such as fuel and tanks.
Those capabilities will become increasingly important if the company wants to move from individual demonstrations to large-scale commercial production.
Could Recycled Plastic Become Rocket Fuel?
One particularly interesting possibility is the use of recycled plastic as a fuel source.
Letara has indicated that recycled plastics could potentially be used with its hybrid propulsion technology. However, the company says additional research and testing would be required before such an application could become practical.
If successful, this approach could add another dimension to the technology by combining space propulsion with the reuse of waste materials.
For now, the priority is proving that Letara’s propulsion systems can achieve the reliability and performance required by commercial and government customers.
Japan’s Growing Space Ambitions
Letara’s expansion comes as Japan seeks to strengthen its domestic aerospace industry.
Government investment, changes to defense-export policies and growing private-sector participation are creating a more favorable environment for Japanese space startups.
For Letara, the latest funding provides an opportunity to move from university-derived research and small-scale propulsion systems toward larger commercial applications.
The company’s upcoming in-orbit test could become a major milestone. If the technology performs as expected, Letara could become one of the Japanese startups competing for a larger role in the global space propulsion market.
The challenge now is turning promising propulsion technology into a dependable product that can be manufactured at scale and used across increasingly demanding space and defense missions.
Source: TechCrunch, with additional information from Letara and the sources cited in the original reporting.
This Future Tech Hub article is independently written and organized using publicly available information from the sources above.