Landspace, a Chinese launch startup, has received a substantial financial boost from the state-backed National Manufacturing Transformation and Upgrading Fund. The company secured 900 million yuan ($123 million) to further its development of reusable launch vehicles.
This funding will primarily support the development, testing, and production of Landspace's Zhuque reusable methane-liquid oxygen launch vehicles. The investment comes after the successful November launch of the enhanced Zhuque-2 rocket, capable of carrying 4,000 kg to a 500-kilometer sun-synchronous orbit, and a September vertical liftoff and landing test of the larger Zhuque-3.
Landspace aims for the first orbital launch of the Zhuque-3 in 2025, with the first stage recovery and reuse planned for 2026. The Zhuque-3’s reusability and medium-lift capacity will significantly enhance China’s orbital launch capabilities and contribute to its megaconstellation projects. The two-stage rocket boasts a 4.5-meter diameter, 76.6-meter length, and a LEO payload capacity of 21,000 kilograms (expendable), 18,300 kg (downrange recovery), or 12,500 kg (launch site recovery).
This significant investment builds upon Landspace's previous $175 million funding round in 2020 and follows similar large investments in other Chinese space startups like Space Pioneer and Orienspace. Landspace's emergence as a leading player follows the Chinese government’s 2014 decision to open parts of its space sector to private investment. The company also plans to launch cargo missions to the Tiangong space station starting in 2026, a project aligning with CMSEO's initiatives for commercial cargo solutions.
The National Manufacturing Transformation and Upgrading Fund, established in 2019 with a registered capital of 147.2 billion yuan ($20.95 billion), focuses on strategic areas such as new materials and next-generation information technology. Its investment in Landspace reflects China’s broader policy to support its commercial space sector, including easing licensing and improving resource access. The designation of commercial space as a strategic emerging sector in 2022, and subsequent provincial and city-level action plans, further underscore this commitment.