German Startups Eye Japan: A New Era of Tech Collaboration

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German startups are forging partnerships with Japan in defense, fusion, and space tech. Discover how these collaborations signal a new era of tech cooperation and why other European startups might follow.

German startups are increasingly looking to Japan for international expansion, industrial partnerships, and technological cooperation. From defense tech and nuclear fusion to quantum computing and space infrastructure, recent developments suggest that Tokyo is becoming a key partner for some of Europe's most ambitious tech companies. This momentum was especially visible during German Chancellor Friedrich Merz's visit to Japan. Munich-based Proxima Fusion announced two Japanese partnerships, while drone manufacturer Quantum Systems unveiled agreements with Mitsubishi Chemical and Panasonic, along with plans to establish a permanent presence in Tokyo. These announcements are part of a broader diplomatic push: Germany and Japan were expected to sign 33 memoranda of understanding (MoUs) covering AI, nuclear fusion, and other advanced technologies. But the real story for Europe's startup ecosystem goes beyond a single diplomatic visit. ### More Than Handshakes For Quantum Systems, the visit marks a step toward becoming an established player in Japan's defense tech market. Founded in 2015 in Gilching by Florian Seibel, Michael Kriegel, Tobias Kloss, and Armin Busse, Quantum Systems develops unmanned aerial systems and software for defense, security, and civilian applications. The company announced the establishment of Quantum Systems Japan K.K., including a Tokyo office, alongside MoUs with Mitsubishi Chemical and Panasonic. The agreements aim to combine Japanese manufacturing capabilities with German drone technology, strengthening local supply chains and bringing Quantum Systems closer to Japanese customers. Sven Kruck, co-CEO of Quantum Systems, said: "Japan has understood where defense is heading: unmanned systems, rapid innovation, and the industrial capacity to deliver at scale. Ukraine has shown why this matters. When personnel are scarce and threats evolve fast, technological advantage is decisive. Japan's manufacturing strength and our operational experience are a powerful combination. We are proud to put down roots in Japan and honored to help strengthen its defense industrial base." Meanwhile, Munich-based Proxima Fusion, founded in 2023 as a spin-out from the Max Planck Institute for Plasma Physics, announced two separate agreements involving fusion energy. Its agreement with Kyoto Fusioneering focuses on plasma-heating systems and fuel-cycle technologies. A separate agreement with Fujikura explores industrial-scale manufacturing of superconducting tape in Lower Saxony, building on a previously announced €140 million ($150 million) manufacturing initiative. The cooperation also extends into space. Established German aerospace group OHB signed an MoU with Japanese space-tech company Astroscale, founded in 2013, to explore opportunities in orbital servicing, surveillance, and space security. Astroscale, on the same day, also announced a €17 million ($18 million) MOD contract from the UK Government. ### Tokyo Was Already Calling The latest announcements are part of a broader trend. Munich-based defense AI startup Helsing, founded in 2021, has already been pursuing opportunities in Japan. In August 2026, Reuters reported that Japanese conglomerate Rakuten was helping Helsing pursue a potential contract to supply unmanned systems to Japan's military. Its HX-2 strike drone was undergoing testing by Japan's Ground Self-Defense Forces. Industrial cooperation has also attracted Japanese capital into Germany. In March 2025, Panasonic announced a €30 million ($32 million) equity investment in Munich-based tado°, founded in 2011, expanding an existing partnership combining Panasonic's heat pumps with tado°'s smart heating controls and energy management software. Quantum computing provides another example. Japanese companies are increasingly collaborating with German startups in this field, though specific details are still emerging. This trend underscores a growing recognition of mutual benefits: Japan offers manufacturing prowess and market access, while Germany brings innovative technology and engineering expertise. For European startups, Japan presents a compelling opportunity to scale globally. The recent flurry of partnerships and investments signals that Tokyo is open for business—and German startups are leading the charge. Should the rest of Europe follow? The answer might just be yes.