Xcimer Energy has finalized an agreement for up to $30.5 million in additional funding through the U.S. Department of Energy’s Milestone-Based Fusion Development Program, advancing the company’s effort to commercialize laser fusion energy.
The additional award brings potential DOE Milestone Program funding available to Xcimer to $39.5 million.
Combined with a separate $4 million ARPA-E award received in 2024, Xcimer has secured up to $43.5 million in non-dilutive federal funding.
The latest funding corresponds to the second budget period of the DOE Milestone-Based Fusion Development Program and will be distributed as Xcimer achieves agreed technical and development milestones.
Xcimer is developing an excimer laser architecture specifically designed for use in a commercial fusion power plant.
The company’s approach uses gas lasers, gas optics and a two-beamline architecture designed to repeatedly deliver megajoule-scale laser energy while reducing the cost and complexity associated with other high-energy laser systems.
Xcimer is targeting electricity generation from commercial fusion during the mid-2030s.
Earlier in 2026, the Department of Energy approved the preconceptual design and technology roadmap for Athena, Xcimer’s planned commercial fusion power-plant architecture.
The company expects its first commercial fusion plant to begin operating around 2035.
Xcimer also launched operations in June at Phoenix, which it describes as the world’s largest privately owned laser system.
Phoenix is being used to demonstrate important elements of Xcimer’s excimer-laser and gas-optics architecture.
The company is simultaneously exploring defense applications for portions of its laser technology.
In September, Xcimer and RTX announced a partnership to develop directed-energy air defense systems based on Xcimer’s pulsed lasers.
The companies intend to demonstrate the integration and containerization of Xcimer laser technology with RTX air defense systems.
RTX also invested in Xcimer as part of the relationship.
KEY QUOTES:
“America invented laser fusion, and America should lead its commercialization. The Milestone-Based Fusion Development Program is built to turn American scientific leadership into commercial capability by putting private capital and private-sector execution behind ambitious, measurable goals. Xcimer is making real progress toward a new generation of laser fusion technology, and this award will help accelerate that work.”
Darío Gil, Under Secretary for Science at the U.S. Department of Energy
“We have moved from proving that the physics works to building the industrial technology that can turn fusion into a commercial energy source. This additional milestone funding gives us another powerful mechanism to accelerate that work while keeping the majority of the investment and risk in the private sector. We are building the laser, manufacturing systems and supply chain required to make commercial laser fusion possible.”
Conner Galloway, Co-Founder and CEO of Xcimer Energy
