Galactic Energy Raises $336 Million for Rocket Development
Beijing-based Galactic Energy has secured a significant funding round of 2.4 billion yuan (approximately $336 million), marking what appears to be China’s largest disclosed investment for a launch startup. The announcement was made on September 28, 2023, as the company prepares for orbital test flights of its new rocket series, including the Pallas series of reusable liquid propellant launchers and the Ceres-2 solid rocket.
The funding will primarily support the development of these launch systems, as well as the production, testing, and establishment of launch facilities. Founded in February 2018, Galactic Energy has built a reputation for reliability with its light-lift Ceres-1 solid rocket, which has previously attracted $154 million in Series C funding for its plans regarding the Pallas-1 rocket.
The Pallas-1, designed to carry up to 7,000 kilograms to a 200-kilometer low Earth orbit (LEO), is a kerosene-liquid oxygen rocket. Initially, its payload capacity was estimated at 8,000 kg. The company has ambitious plans for a subsequent model, Pallas-2, which aims to achieve payload capabilities between 20,000 kg and 58,000 kg, contingent on the configuration chosen. A launch of the Pallas-2 is targeted for 2026.
The recent funding round features a diverse mix of investors, including government-backed funds, municipal investment platforms, and industry-oriented funds. Notable contributors include the Beijing Commercial Spaceflight and Low-Altitude Economy Industry Investment Fund and the Sichuan Industry Revitalization Investment Group. This influx of capital reflects a strong commitment from both state and provincial authorities, underscoring the strategic importance of commercial space as designated by the Chinese government.
Galactic Energy’s funding success is not an isolated incident. Chinese commercial launch startups like Landspace, Space Pioneer, and Orienspace have also recently secured significant investments, indicating a robust interest in the commercial space sector, even as competition intensifies.
Recent Developments and Upcoming Tests
On the same day as the funding announcement, Galactic Energy reported a successful static fire test of the second stage of the Pallas-1 rocket. Conducted near Chizhou city in Anhui province, the test lasted just over 220 seconds, marking a crucial step toward the rocket’s first orbital test flight. The first stage hot fire test is yet to be performed. Reports suggest that the Pallas-1 will be transported to the national Jiuquan spaceport in northwest China around November 2023, ahead of a test launch from dedicated facilities at Jiuquan’s Dongfeng Commercial Space Innovation Experimental Zone.
Galactic Energy has received guidance from various governmental units, including the State Administration of Science, Technology and Industry for National Defense (SASTIND). This comes in the wake of the China National Space Administration (CNSA) tightening quality oversight over commercial projects following a static fire incident involving another commercial firm in June 2024.
In addition to the Pallas-1, Galactic Energy has also completed the final assembly and testing of its Ceres-2 solid rocket. This upgraded version is expected to launch “at an appropriate time” soon and is designed to carry six satellites. The Ceres-2 will have a payload capacity of 1,600 kg to 500-km LEO and 1,300 kg to 500-km SSO, significantly enhancing the capabilities offered by its predecessor, the Ceres-1, which could carry 400 kg to LEO.
As Galactic Energy advances with the Pallas series and Ceres-2, the company aims to secure contracts for projects such as the Guowang national broadband megaconstellation, which is becoming a pivotal aspect of China’s expanding launch activities and reflects the nation’s growing ambitions in the commercial space sector.
