A British space race contender appears to be on the brink of collapse, leaving a rival eyeing its assets! It's a dramatic turn of events for Orbex, a UK-based rocket company that has announced its intention to appoint administrators. This move sadly signals the likely end of Orbex and its ambitious goal to launch its Prime rocket by 2026. After a thorough search for funding and potential mergers, the company has concluded that its business is no longer sustainable.
Orbex CEO Phil Chambers expressed profound disappointment, stating, "Disappointing doesn't come close to describing how we feel about this moment." He highlighted their efforts to build a "sustainable, world-class sovereign space launch capability for the UK," noting they were "on the cusp of our first test flights later this year." This sentiment of being close yet falling short has been a recurring theme. Back in 2021, former CEO Chris Larmour mentioned aiming for the "end of 2022," while acknowledging that "there's always something either internally or externally, that impacts the ability to meet those dates…"
Adding to the intrigue, Larmour departed Orbex abruptly in 2023, asserting he was "leaving the company in good shape, with deep pockets and a clear path to first launches." But here's where it gets controversial... did his departure and the company's subsequent struggles paint a different picture than he presented?
Now, Skyrora, another prominent UK space company, has stepped forward with interest in acquiring some of Orbex's assets. This includes the Sutherland Spaceport, a facility in the Scottish Highlands intended to support Orbex's Prime rocket. However, Orbex had already confirmed a pause in construction at Sutherland in late 2024, with initial launches planned from the SaxaVord Spaceport in Shetland.
Dr. Jack-James Marlow, COO at Skyrora, confidently stated, "As the only UK company with a domestic launch license and both manufacturing and testing capabilities, Skyrora is best placed to take over Orbex's assets." He further elaborated that while employment decisions are contingent on the final deal, Skyrora is "open to engaging experienced engineers and specialists" from the Orbex team. Skyrora is also exploring the acquisition of "select assets that are strategically important to maintaining UK sovereign launch capability," such as infrastructure, equipment, and intellectual property, pending discussions with administrators and regulatory approvals.
And this is the part most people miss... The collapse of Orbex is a significant embarrassment for the UK government. In January 2025, then-technology secretary Peter Kyle lauded the government's £20 million investment in Orbex, predicting it would "turbocharge the country's position in the space sector and inspire our next generation of space professionals." A subsequent £6 million investment followed, yet it seems Orbex, in its current state, won't be reaching orbit anytime soon.
A UK government spokesperson acknowledged the challenging situation for Orbex staff, stating, "Space launch is a highly competitive sector, and it has always been the case that some companies will succeed, while others will fail." They reaffirmed their commitment to the UK space sector, highlighting its strong private investment and numerous innovative companies. The government also indicated that more details on plans for national space capabilities, including launch, would be shared soon, with a focus on "maximum impact for taxpayers’ money."
What are your thoughts on this development? Do you believe the government's investment was misallocated, or is this simply the nature of a high-risk, high-reward industry? Share your opinions below!
