Testing and evaluating candidate fusion reactor materials in a high-flux, high-energy neutron environment are critical to the success and economic feasibility of a fusion device. The current understanding of materials behavior in fission-like environments and existing fusion facilities is insufficient to ensure the necessary performance of future fusion reactor components. An accelerator-based deuterium-lithium system to generate the required high neutron flux for material testing is considered to be the most promising approach in the near future. In this system, a high-energy (30-40 MeV) deuteron beam impinges on a high-speed (10-20 m/s) lithium jet to produce the high-energy (greater than or equal to 14 MeV) neutrons required to simulate a fusion environment via the Li (d, n) nuclear stripping reaction. Interaction of the high-energy deuteron beam and the subsequent response of the high-speed lithium jet are evaluated in detail. Deposition of the deuteron beam, jet-thermal hydraulic response, lithium-surface vaporization rate, and dynamic stability of the jet are modeled. It is found that lower beam kinetic energies produce higher surface temperature and consequently higher Li vaporization rates, Larger beam sizes significantly reduce both bulk and surface temperatures. Thermal expansion and dynamic velocities (normal to jet direction) due to beam energy deposition and momentum transfer are much lower than jet flow velocity and decrease substantially at lower beam current densities.