Merz brings German fusion and drone firms to Tokyo in deep-tech push
What's the deal? German deep-tech firms Proxima Fusion and Quantum Systems signed partnerships in Japan during Chancellor Friedrich Merz's visit on October 28. Proxima, a fusion startup, agreed memoranda of understanding with FujikuraDealroom has a profile for this one. Try Dealroom → and Kyoto Fusioneering; drone maker Quantum Systems opened a Tokyo subsidiary and formed ties with Mitsubishi Chemical and Panasonic.
What's the endgame? Proxima's deals aim to secure supply for its future stellarator power plants, covering high-temperature superconducting tape (Fujikura needs to supply roughly 20,000 km of it for Proxima's Alpha demonstrator), plasma heating, and fuel cycle technologies. The company raised €411 million in July and is advancing its Alpha demonstrator.
Why now? The agreements follow a new bilateral framework. Prime Minister Takaichi Sanae and Merz issued joint declarations on advanced technology and economic security cooperation, naming fusion, hydrogen, critical minerals, and supply-chain resilience as priorities.
The policy backdrop: The two leaders also agreed to deepen defense industry cooperation under their respective Indo-Pacific guidelines — relevant to Quantum Systems, whose drones align with Japan's interest in unmanned defense systems and local industrial capacity. Takaichi separately raised Japan's "strong concerns" about the EU's Industrial Accelerator Act.
What could go wrong? These are MoUs, not funded manufacturing projects or commercial power. Proxima still needs federal support for its broader plan, and the commercial payoff depends on turning cooperation into production and procurement.
The signal: Berlin and Tokyo are pairing policy with private deals to build resilient supply chains in strategic technologies. For German deep-tech startups, Japan is emerging as a manufacturing and defense partner — but the hard work of execution lies ahead.
Image credit: Generated with Gemini
Read more: Tech.eu, japan.kantei.go.jp
