HELSINKI -- Chinese launch startup Landspace has secured major funding from a state-backed investment initiative to boost its development of reusable launchers.
Landspace received 900 million yuan ($123 million) from China's National Manufacturing Transformation and Upgrading Fund, according to Chinese media reports on December 25.
The company stated that the funds will primarily be used for the development, testing, and production of its Zhuque reusable methane-liquid oxygen launch vehicles.
In November, Landspace successfully launched its first enhanced Zhuque-2 rocket, capable of launching 4,000 kg of payload to a 500-kilometer sun-synchronous orbit. This followed a 10-kilometer-altitude vertical liftoff and landing test at Jiuquan spaceport in September for the much larger, stainless steel Zhuque-3 launcher.
Landspace is aiming for a first orbital launch of the Zhuque-3 in 2025, with the first recovery and reuse of the first stage expected in 2026. The rocket's reusability and medium-lift capability would significantly enhance China's capacity to launch more mass to orbit, potentially supporting Chinese megaconstellation plans.
The two-stage rocket will measure 4.5 meters in diameter and have a total length of 76.6 meters. Its payload capacity to low Earth orbit (LEO) will be 21,000 kilograms when expendable, 18,300 kg when the first stage is recovered downrange, and 12,500 kg when returning to the launch site. Currently, China's most capable rocket for LEO launches is the expendable Long March 5B, which launches from Wenchang.
This funding marks a significant boost for Landspace, which previously raised $175 million in 2020. Other major Chinese launch startup funding rounds this year include Space Pioneer securing $207 million and Orienspace with $83.5 million. These companies are part of a growing array of startups and state-owned entities developing reusable launch vehicles.
Landspace is among the first launch startups to emerge following a Chinese central government decision in late 2014 to open portions of the space sector to private capital.
The company also announced that it will begin launching cargo missions to the Tiangong space station starting in 2026. China's human spaceflight agency, CMSEO, announced in October that two companies had been selected to develop low-cost, commercial cargo solutions for Tiangong.
The Fund backing Landspace was established in 2019 with a registered capital of 147.2 billion yuan ($20.95 billion). Its main objective is to invest in strategic areas, including new materials and next-generation information technology. This fund is part of China's industrial policy to transform its manufacturing sector.
China is looking to provide greater support for its commercial space sector through policy changes, easing of licensing restrictions, and increasing access to resources. The central government designated commercial space as a strategic emerging sector for the first time last year. Several Chinese provinces and cities have since introduced or are developing action plans to attract and nurture space companies and clusters.