Japanese space tech startup Letara expands beyond satellite thrusters with $16M
Letara, a Sapporo-based space startup, has raised ¥2.6 billion (around $16 million) to expand beyond its original focus on satellite thrusters into developing large hybrid rocket systems for the space, defence and security markets. The funding comes as Japan increases investment in its domestic space industry and relaxes defence export restrictions, creating an opening for homegrown aerospace firms with global ambitions. Co-CEO Shota Hirai said the company now intends to explore a much wider range of applications for its propulsion technology rather than simply demonstrating thrusters in orbit.
The round was co-led by Headline Asia, JIC Venture Growth Investment and Incubate Fund, with backing from strategic investors including energy firm NES Corporation, Toyota Group supplier Toyoda Gosei, and Greece-based Frontier Innovations. Letara's hybrid rockets separate solid fuel, made from inexpensive materials such as plastic and rubber, from a liquid oxidiser, using a proprietary manufacturing process to improve thrust and reduce waste compared with traditional paraffin-based designs. Spun out of Hokkaido University in 2020, the company faces growing competition from rivals such as Interstellar Technologies, Galactic Energy, InnoSpace, Equatorial Space, HyImpulse and Gilmour Space, in a global hybrid rocket propulsion market projected to grow from $848 million in 2024 to $2.6 billion by 2032.
- Letara raises $16M to build large hybrid rocket systems
- Expands from satellite thrusters into space and defence markets
- Faces rising competition in a fast-growing propulsion sector
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Letara is a Japanese space startup based in Sapporo, spun out of Hokkaido University in 2020, which has so far focused on building thrusters that help satellites manoeuvre in orbit. It has now raised around $16 million (¥2.6 billion) to broaden its work into larger hybrid rocket systems, technology with potential uses in the space, defence and security sectors.
The company's rockets use a hybrid design that keeps solid fuel, made from cheap materials like plastic and rubber, separate from a liquid oxidiser, which supporters say can improve thrust and cut waste compared with older methods. The investment comes as Japan puts more money into its space industry and eases rules on defence-related exports, giving domestic firms more room to compete internationally.
Letara operates in a crowded and fast-growing field, competing with companies from several countries including Interstellar Technologies, Galactic Energy, InnoSpace, Equatorial Space, HyImpulse and Gilmour Space. Analysts expect the global market for hybrid rocket propulsion to grow substantially by the early 2030s, which helps explain why investors and rival firms are paying close attention to this sector.
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