Japanese space tech startup Letara is expanding its focus beyond satellite thrusters with the recent announcement of a $16 million funding round. The company, based in Sapporo, plans to develop large rocket systems for use in the space, defense, and security markets. This expansion comes as Japan pours billions into its burgeoning space industry and eases restrictions on defense exports.

Letara’s technology revolves around hybrid propulsion systems that keep solid fuel separate from liquid oxidizer needed for combustion. The company has developed a proprietary manufacturing process to ensure reliable ignition and consistent burning of inexpensive materials like plastic and rubber, resulting in more efficient thrust generation with less waste compared to traditional hybrid rockets. Letara aims to solve three key problems limiting the use of hybrid propulsion: generating sufficient thrust, maintaining performance, and controlling combustion.

The global hybrid rocket propulsion market is projected to expand significantly over the next decade, driven by growing demand for launch and defense capabilities. Despite competition from other companies developing similar technologies, Letara sees opportunities in both satellite makers/operators, launch companies, governments, and defense contracts. The company has already secured orders from various entities but will need to establish a repeatable manufacturing process and reliable supply chain to support production at scale.

This is a summary. Read the original at techcrunch.com.