Britain Takes Stake in SpaceX Rival Orbex to Boost Space Ambitions

The UK government has taken a significant step towards bolstering its space ambitions by investing £20 million in Orbex, a Scottish spaceflight startup aiming to rival Elon Musk's SpaceX. The investment, part of Orbex's Series D fundraising round, was announced at the European Space Conference in Brussels on Wednesday, January 29, 2025.

Orbex, founded in 2015, develops both small and medium-sized space rockets using a renewable form of propane known as bio-propane as fuel. The company is set to launch its first rocket, Prime, towards the end of 2025. Measuring 19 meters long, Prime is designed to transport small satellites into low-earth orbit. The UK government's investment in Orbex will contribute to its ambition to regularly launch UK-made rockets from British soil.

The investment is part of the UK government's broader Plan for Change, which aims to grow the economy, create jobs, and inspire a new generation of British space professionals. By investing in Orbex, the government expects to bring highly skilled jobs and investment to communities and organizations across the UK, while also helping the country become a leading destination for small satellite launches in Europe.

Phillip Chambers, chief executive of Orbex, welcomed the government's investment, stating, "This first of a kind investment by the UK Government demonstrates its confidence in the UK's space rocket manufacturing and launch sector and is an exciting start to the opening of our Series D fundraising. We are entering the final preparations to deliver the most flexible and environmentally sustainable launch services to the global satellite industry. This investment paves the way not only for us to launch our first rocket this year but also to develop a larger rocket to enable us to compete in the European Launcher Challenge."

The UK government's investment in Orbex aligns with its strategic objectives in the space sector, including becoming a leading destination for small satellite launches in Europe, creating highly skilled jobs, inspiring a new generation of space professionals, and developing Britain's launch capabilities. By supporting Orbex's launch, the government aims to turbocharge the country's position in the space sector and inspire its next generation of space professionals.



The investment in Orbex is part of a larger trend of European countries investing in their domestic space industries to compete with established players like SpaceX. Other European startups, such as Skyrora and Rocket Factory Augsburg, are also planning UK launches for 2025. Orbex's innovative technology, market leadership, and potential for growth have attracted investments from various sources, including the UK government, Denmark's Export & Investment Fund, Octopus Ventures, and private investor Sohaib Abbasi.

The total raised so far in Orbex's Series D round stands at £23 million, with the funding expected to accelerate further development of the Prime rocket and support the company's growth. The investment from the UK government demonstrates its commitment to the UK space industry and its confidence in Orbex's potential to compete in the global space market.

In conclusion, the UK government's investment in Orbex is a strategic move to boost the country's space ambitions, create jobs, and inspire a new generation of space professionals. By supporting Orbex's launch, the government aims to become a leading destination for small satellite launches in Europe and develop Britain's launch capabilities. The investment aligns with the government's broader Plan for Change and demonstrates its commitment to growing the UK's space industry and attracting launch investment into the country.