Japanese space tech startup Letara expands beyond satellite thrusters with $16M

Letara's Expansion into Large Rocket Systems

Japanese space tech startup Letara is expanding its focus beyond satellite thrusters with $16 million in new funding. The company plans to develop large rocket systems for the space, defense, and security markets, targeting satellite makers and operators, launch companies, and governments.

Letara's technology is centered around 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 aim is to solve three problems that have so far, limited the use of hybrid propulsion: generating sufficient thrust, maintaining performance, and controlling combustion. There is considerable opportunity if Letara is successful. The global hybrid rocket propulsion market is projected to expand to $2.6 billion by 2032, up from $848 million in 2024, at a CAGR of 15% — a trajectory that points to growing demand for the technology.

Still, Letara isn't alone in its pursuit. A number of companies are developing hybrid rocket technology, including Japan's Interstellar Technologies, China's Galactic Energy, South Korea's InnoSpace, and Singapore's Equatorial Space are advancing hybrid rocket technology. German startup HyImpulse and Australian Gilmour Space are also pursuing 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 was focused on developing satellite thrusters. Since then, the global propulsion market has become more crowded as demand for launch and defense capabilities has grown. Letara is now pursuing opportunities in defense contracts and launch services, in an effort to position itself to compete not just with other Japanese startups, but with companies around the world.

Market Opportunity

Letara is targeting satellite makers and operators, launch companies, and governments. It sees commercial satellites as its biggest market for in-space propulsion, while government demand for rocket systems is growing, particularly in Japan. The company says it has already won orders from rocket and satellite companies as well as the Japanese government, although it did not disclose the value of those contracts.

Next Steps

Letara's next major milestone is an in-orbit firing test with an overseas partner, which Letara sees as a key step toward commercialization. It will also need to establish a repeatable manufacturing process, backed by quality controls, and a reliable supply chain for fuel and tanks that can support production at scale.