We analyzed several properties of an electron neutralized light ion beam that is radially and longitudinally collapsing as it propagates through a diffuse background gas. Considerations of both equilibrium and stability suggest that if such a beam can be produced with an initial effective emittance of ∼2 × 10−4 cm⋅rad, and is neutralized to one part in 106, then it could be propagated through a background pressure of order 10−5 Torr, compressed by a factor of 2 − 105, and deliver of order 1013 W/cm2 on a 0.1-cm-radius target; hence, it could form an economical driver for a pellet fusion system.