From a university laboratory in Hokkaido, a small company called Letara has grown into a symbol of Japan's broader ambition to reclaim a place among the world's aerospace powers. With $16 million in fresh capital, the Sapporo-based startup is moving beyond satellite thrusters toward rockets capable of serving defense ministries and commercial launch operators — a leap that mirrors Japan's own loosening of restrictions on defense exports and its deepening investment in space. The company's wager is that hybrid propulsion, long considered a promising but immature technology, can be made reliable