Beijing-based launch company Galactic Energy has secured 2.4 billion yuan, equivalent to approximately $336 million, in a Series D financing round. The company announced the funding on September 28, stating the capital will support the development of its Pallas series of reusable liquid-propellant rockets and its new Ceres-2 solid rocket.
Key Takeaways
- Galactic Energy raised 2.4 billion yuan ($336 million) in its latest funding round, one of the largest for a private Chinese launch company.
- The funds will be used to develop the reusable Pallas-1 and Pallas-2 liquid-fuel rockets, as well as the new Ceres-2 solid-fuel rocket.
- The company also announced the successful static fire test of the Pallas-1 second stage and the final assembly of the first Ceres-2 rocket.
- This investment highlights a trend of strong government-backed financial support for China's commercial space sector.
A Major Financial Injection for Space Ambitions
Galactic Energy, a commercial space company founded in February 2018, has successfully closed a significant funding round. The 2.4 billion yuan investment marks a substantial step forward for the company's ambitious launch vehicle programs. The capital is designated for advancing its next-generation rockets and expanding related production and testing infrastructure.
The investment round was led by a consortium of government-affiliated entities. Key participants include the Beijing Commercial Spaceflight and Low-Altitude Economy Industry Investment Fund and the Sichuan Industry Revitalization Investment Group. The strong presence of state and provincial funds underscores the strategic importance of the commercial space industry within China's national economic plans.
A Trend of State-Backed Investment
This funding event is part of a broader pattern in China's space economy. Other launch startups, including Landspace, Space Pioneer, and Orienspace, have also recently secured large investments with significant involvement from local and provincial governments. This trend reflects the central government's designation of commercial space as a key strategic industry for future growth.
The new financing builds on Galactic Energy's previous success, including a $154 million C round in late 2023. The company has already established a track record of reliability with its Ceres-1 light-lift solid rocket, which has completed multiple successful missions.
Developing the Reusable Pallas Rocket Series
A primary focus for the new capital is the Pallas series of reusable liquid-propellant rockets. These vehicles are designed to compete for larger satellite deployment contracts, including those for China's national broadband megaconstellation, Guowang.
Pallas-1 Progress and Specifications
The Pallas-1 is a kerosene-liquid oxygen rocket designed for reusability. According to the company, it will be capable of delivering a 7,000-kilogram payload to a 200-kilometer low Earth orbit (LEO). This is a revision from a previously stated capacity of 8,000 kilograms.
In a significant technical milestone, Galactic Energy also announced on September 28 that it had completed a successful static fire test of the Pallas-1's second stage. The test, conducted near Chizhou city in Anhui province, ran for over 220 seconds, validating the stage's performance. The company noted that it received guidance from the State Administration of Science, Technology and Industry for National Defense (SASTIND) for the test.
Increased Government Oversight
The mention of SASTIND's guidance aligns with recent moves by the China National Space Administration (CNSA) to increase quality oversight of commercial space projects. This initiative followed a near-disastrous static fire incident involving another commercial firm, Space Pioneer, in June 2024.
While the second stage test is complete, a hot fire test for the rocket's first stage has not yet been conducted. Reports from Chinese media suggest the fully assembled Pallas-1 will be transported to the Jiuquan spaceport in November for its inaugural orbital test flight.
Future Plans for Pallas-2
Galactic Energy is also looking further ahead with the Pallas-2, a heavy-lift launch vehicle. The company announced plans in August for a rocket capable of lifting 20,000 to 58,000 kilograms to LEO, depending on whether it uses a single or triple-core configuration. The company has set an aggressive target for a debut launch in 2026.
Ceres-2 Solid Rocket Nears Inaugural Flight
In addition to its liquid-fuel program, Galactic Energy is expanding its solid-fuel rocket family. The company confirmed on September 28 that final assembly and testing of the new Ceres-2 rocket are complete. The rocket is scheduled for launch in the near future and will carry six satellites on its first mission.
The Ceres-2 is a significant upgrade to the successful Ceres-1. It offers a much larger payload capacity, aiming to serve a different segment of the satellite market.
Ceres-2 Payload Capacity
- To 500-km LEO: 1,600 kg
- To 500-km Sun-Synchronous Orbit (SSO): 1,300 kg
For comparison, the smaller Ceres-1 can carry 400 kg to LEO or 300 kg to a 500-km SSO.
The development of both the Pallas and Ceres rocket families positions Galactic Energy to compete for a wide range of launch contracts. The company's progress, backed by substantial new funding, signals its intent to become a leading player in China's increasingly competitive and strategically important commercial launch market.