Japan is channeling billions of dollars into its burgeoning space industry and easing restrictions on defense exports, efforts aimed at building a homegrown aerospace sector filled with domestic startups with global reach.
Letara, a Sapporo-based startup developing hybrid propulsion systems for spacecraft, is poised to capitalize on this push. After focusing on hybrid thrusters for small satellites, the company now plans to develop large rocket systems for the space, defense, and security markets, co-CEO Shota Hirai told TechCrunch.
This expansion is fueled by ¥2.6 billion (approximately $16 million) in new funding, as the startup works to turn years of academic research and demonstrations into a commercial business. The round was co-led by Headline Asia, JIC Venture Growth Investment, and Incubate Fund, with participation from strategic investors including NES Corporation (an energy company), Toyoda Gosei (a Toyota Group supplier of rubber and plastic automotive components), and Frontier Innovations (a Greece-based IT firm specializing in data analytics and business intelligence).
“With this round, we will go beyond demonstrating that thruster in space,” Hirai said. “We plan to explore a much wider set of use cases across both the space domain and the defense and security domain, and to develop and propose hybrid rocket systems suited to each of them.”
At the heart of Letara’s technology is a hybrid rocket design that keeps its solid fuel separate from the liquid oxidizer needed for combustion. Inexpensive, widely available materials such as plastic and rubber are used as solid fuel. The company has developed a proprietary manufacturing process that mixes, shapes, and compresses these materials to ensure they ignite reliably and burn consistently. The result is a system that can deliver more thrust with less waste than traditional hybrid rockets, which often rely on expensive paraffin wax.
The aim is to solve three problems that have so far limited the use of hybrid propulsion: generating sufficient thrust, maintaining performance, and controlling combustion, Hirai said.
Considerable opportunity exists if Letara succeeds. The global hybrid rocket propulsion market is projected to expand to $2.6 billion by 2032, up from $848 million in 2024, at a compound annual growth rate of 15%—a trajectory pointing to growing demand for the technology.
Still, Letara isn’t alone in its pursuit. Several companies are developing hybrid rocket technology, including Japan’s Interstellar Technologies, China’s Galactic Energy, South Korea’s InnoSpace, and Singapore’s Equatorial Space. German startup HyImpulse and Australian Gilmour Space are also advancing hybrid rocket technology, while other U.S. companies are developing competing propulsion and launch systems.
Academic Roots
The idea for Letara emerged while co-CEOs Landon Thomas Kamps and Hirai were researching rocket propulsion at Hokkaido University. They believed the relative safety and simplicity of hybrid rockets could make the technology useful beyond traditional space programs, particularly as private companies expand into the industry.
The company’s ambitions have grown along with the market. When Letara was spun out of Hokkaido University in 2020, it focused on developing satellite thrusters. Now, with fresh funding and a broader vision, the startup is positioning itself to become a key player in Japan’s evolving aerospace ecosystem, bridging the gap between academic innovation and commercial deployment.
via TechCrunch