Launch Industry Shifts: SpaceX declines military contracts while Spain nears maiden flight

The current trajectory of the commercial launch market is defined by a stark strategic divergence between American and European players. While SpaceX has moved to tighten its grip on specific sectors of the US government’s portfolio, Spanish rocket maker PLD Space is on the verge of completing its first flight-ready vehicle. This week brought two significant developments that highlight the widening gap in readiness between established heavy-lift providers and emerging small-lift startups, as well as the complex financial calculations now driving private space companies.

In a notable shift for the United States, SpaceX informed the US Space Force that it would not be accepting three offered military launch contracts. This decision, which arrived as a surprise to many industry observers, signals a potential recalibration in how the company approaches defense-related work. By declining these specific opportunities, SpaceX appears to be prioritizing other operational goals or internal resource allocation, suggesting that the relationship between the leading private launch provider and the military branch is undergoing a period of renegotiation.

On the civil side of SpaceX’s operations, a NASA safety panel issued a detailed assessment regarding the Starship vehicle. The panel indicated that a lunar landing mission could require as many as 22 refueling operations in orbit. This high number underscores the complexity of the in-space refueling technology that is central to the vehicle’s architecture. For a system intended to carry humans to the Moon, the necessity of such a large number of propellant transfers introduces significant logistical and safety considerations that must be addressed before crewed missions can proceed.

While American giants debate contract portfolios and fueling logistics, European efforts are gaining tangible momentum. PLD Space, a Spanish company, reported that its Miura 5 rocket is nearing final integration. The vehicle is scheduled to undertake its inaugural launch next year, marking a significant milestone for the company. This progress is part of a broader strategy to establish a reliable small-lift capability that can compete in the global market for satellite deployment.

CEO Raúl Torres noted that the company has already manufactured three Miura 5 rockets. According to Torres, the other two units are designated to qualify key system elements before the first flight. This approach allows the engineering teams to apply lessons learned from qualification campaigns directly to the launch vehicle. The continuous production of multiple units has enabled the company to work across different stages of production simultaneously, streamlining the development process.

Currently, one Miura 5 second stage is fully integrated and has begun system-level testing under representative operating conditions. This stage is located at PLD’s test facility in Teruel, where it is undergoing a rigorous qualification campaign. The tests include a wet dress rehearsal and a static hot-fire test, which are critical steps to verify the structural integrity and performance of the propulsion system under real-world stress.

The target for the first flight of the small-lift vehicle has been set for before mid-2027. This timeline reflects the company’s confidence in its manufacturing pipeline and testing schedule. Achieving this date would place PLD Space among the active providers of small-lift capabilities in Europe, adding to the diversity of launch options available to satellite operators in the region.

In North America, the startup landscape continues to evolve with significant capital movements. Reaction Dynamics, one of three prominent Canadian launch startups, announced it is seeking to raise $350 million. The funds are intended to expand the company’s staff from 68 to more than 350 people, a substantial increase that indicates a ramp-up in production and engineering activities.

The company is developing the Aurora rocket, a small-lift vehicle that Reaction Dynamics hopes will reach orbit in 2028. In addition to this near-term goal, the company has announced plans to build a medium-lift rocket named Borealis, with a debut targeted for 2031. This dual-track development strategy suggests an ambition to cover multiple market segments, although the financial and engineering challenges of developing two distinct rocket systems simultaneously are considerable.