Japanese space technology startup Letara has secured ¥2.6 billion, equivalent to approximately $16 million, in new funding. This investment will fuel the Sapporo-based company's expansion beyond small satellite thrusters into developing larger hybrid rocket systems for the space, defense, and security sectors.
Co-CEO Shota Hirai stated that the funding will enable the company to explore a wider range of applications for its hybrid rocket systems. Letara's technology involves a hybrid rocket design that keeps solid fuel, made from materials such as plastic and rubber, separate from the liquid oxidizer needed for combustion.
The company aims to address challenges in hybrid propulsion, including generating sufficient thrust, maintaining performance, and controlling combustion. Letara has already secured orders from rocket and satellite companies, as well as the Japanese government, though specific contract values were not disclosed.
The global hybrid rocket propulsion market is projected to grow to $2.6 billion by 2032, up from $848 million in 2024. Letara's next significant step is an in-orbit firing test with an overseas partner, which it considers crucial for commercialisation.