Rocket Report: Chinese launch firm raises big money; Falcon 9 back to the Bahamas – Ars Technica

Lead: In the latest Rocket Report edition, multiple commercial and national launch programs made concrete moves this week: Chinese firms secured new capital and sketched reuse timetables, SpaceX resumed an offshore Falcon 9 recovery near the Bahamas, and NASA rehearsed a critical countdown for Artemis II at Kennedy Space Center. The developments span funding, test flights and shore-based infrastructure planning, with tangible dates and technical milestones shaping near-term schedules. Several of the stories—especially booster recovery attempts and hydrogen-fueling fixes—will determine whether planned missions proceed on their current timelines or slip into later windows.

Key takeaways

• iSpace announced a record D++ funding round to accelerate Hyperbola-3 development; Hyperbola-3 is stated to be 69 meters tall with reusable LEO capacity of 8,500 kg and 13,400 kg in expendable mode.
• SpaceX successfully landed a Falcon 9 booster on a drone ship near The Exumas for the second time, the earlier offshore recovery occurred on February 18, 2025; the Bahamas and SpaceX have since reached an agreement to permit further territorial-water returns.
• LandSpace plans a second Zhuque-3 orbital launch and booster recovery attempt in Q2 2026, with a reuse test targeted for Q4 2026; the December inaugural flight reached orbit but the first stage impacted ~40 meters off its landing target about 390 km downrange.
• Rocket Factory Augsburg (RFA) is preparing another RFA One inaugural attempt from SaxaVord after rebuilding a first stage lost in an August 2024 hot-fire anomaly; RFA One is a 30-meter two-stage vehicle with ~1,300 kg LEO capacity.
• The UAE’s Technology Innovation Institute flew its first domestically developed hybrid sounding rocket on February 13, reaching ~3 km altitude and validating a nitrous-oxide/solid polyethylene propulsion approach.
• NASA conducted a second countdown rehearsal for the Space Launch System to assess a hydrogen-fueling leak fix; earlier fuel-gas measurements exceeded a revised safety threshold of 16 percent during the February wet dress rehearsal.
• Cape Canaveral and local Florida officials are assessing grants and mitigation for potential vibration and sonic-boom impacts from upcoming large vehicles such as Starship and New Glenn, with local distance metrics noted for Launch Complex 36 (5.7 miles to nearest condominium, 7.2 miles to City Hall).

Background

Commercial launch continues to diversify worldwide as governments and private firms pursue sovereign access and reusable technologies. Several U.S. allies—including Germany, Spain, the United Kingdom, Canada and Australia—have increased public investment in domestic launch startups to reduce reliance on foreign launch services and to support national security needs. That trend has produced a mix of providers at differing maturity levels: some have flown payloads, others have completed hot-fire tests, and a few are still in early-stage development or facing setbacks.

China’s private sector has expanded rapidly, with companies such as iSpace and LandSpace moving from small-satellite or suborbital flights toward medium-lift reusable ambitions. iSpace made history with Hyperbola-1 in 2019 but that vehicle’s eight-flight record sits at roughly a 50 percent success rate; the firm’s new Hyperbola-3 program uses methane propulsion and aims to scale performance significantly. Simultaneously, European startups like Rocket Factory Augsburg and UK-based projects have pursued test campaigns and pad commissioning, while national space agencies calibrate regulations and financing.

Main event

iSpace announced a major D++ funding round intended to accelerate testing and industrial expansion for Hyperbola-3, a two-stage medium-lift rocket reportedly 69 meters tall and designed to deliver up to 8,500 kg to LEO in reusable mode. Public statements accompanying the funding emphasize test flights later this year and a focus on methane engines and booster recovery development. The raised capital is the largest reported for a Chinese commercial launcher to date, and executives framed it as necessary to remain competitive amid strong domestic competition.

SpaceX returned a Falcon 9 booster to a drone ship stationed in Bahamian territorial waters less than ten minutes after liftoff from Cape Canaveral during a mission that deployed 29 Starlink satellites. The Bahamas initially raised environmental concerns after two Starships broke apart and dropped debris near the country last year, pausing such recoveries; officials and SpaceX subsequently reached an understanding that allowed this second landing near The Exumas, expanding Cape Canaveral’s accessible orbit options via returns in territorial waters.

LandSpace is targeting Q2 2026 for its next Zhuque-3 orbital launch and controlled recovery attempt after a December flight that achieved orbit but saw the first stage crash around 40 meters off a designated landing area near Wuwei County, Gansu province—roughly 390 km downrange. Company representatives briefed the United Nations Office for Outer Space Affairs in February with a roadmap that includes a fourth-quarter reuse exercise if the midyear recovery attempt succeeds.

In Europe, Rocket Factory Augsburg is transferring a replacement first stage from Germany to the SaxaVord Spaceport in Scotland and preparing an upper-stage upgrade that follows an August 2024 hot-fire failure that destroyed the original stage. RFA’s management emphasized a more measured approach while maintaining an aggressive schedule, saying lessons from the August anomaly have been incorporated into a revised test and launch program.

The UAE’s Technology Innovation Institute successfully conducted a February 13 hybrid rocket flight that climbed to roughly 3 kilometers, validating a domestic hybrid propulsion system combining nitrous oxide and polyethylene-based solid fuel. Researchers described the mission as a foundational step toward higher altitudes and more complex missions that could ultimately support an indigenous orbital capability.

Analysis & implications

The iSpace funding round signals continued investor confidence in Chinese commercial launch despite a crowded domestic market and mixed reliability records for some early vehicles. Large capital inflows can accelerate hardware iterations, expand factory capacity, and fund more frequent flight tests—but they can also create schedule pressure to fly before systems are fully matured. If Hyperbola-3 reaches its planned test cadence and demonstrates reliable recovery and reusability, it would materially increase China’s commercial medium-lift capacity and offer state- and private-sector customers a new option.

SpaceX’s regained permission to land boosters in Bahamian territorial waters has operational and orbital-access consequences for U.S. launches from Cape Canaveral. Returning to a coastal recovery area increases the range of orbital inclinations and payload performance profiles possible from eastern Florida launches. For the Bahamas, hosting booster recoveries can bring economic activity but also raises environmental and regulatory questions about debris risk and maritime safety that will require ongoing coordination between the company and the nation’s authorities.

Repeated hydrogen leaks on the SLS highlight the technical brittleness of large cryogenic fueling systems and the programmatic risk they pose to Artemis timelines. NASA’s reassessment of an historic 4 percent local-hydrogen threshold up to 16 percent reflects a tradeoff between safety margins and operational feasibility; nevertheless, until root causes are resolved, flight schedules for Artemis II and the critical Artemis III lunar-landing mission remain exposed to further slip. The agency’s second countdown rehearsal is therefore both a technical test and a schedule gate.

Regional infrastructure planners along Florida’s Space Coast face a near-term challenge as larger launch vehicles become more frequent. The potential for ground vibration and sonic-boom impacts requires data-driven mitigation funding, and local governments are already considering state and federal grants. A proactive approach that couples monitoring, building-hardening programs and clear liability frameworks will reduce both fiscal and political friction as Starship and New Glenn approach operational flight rates.

Comparison & data

The table places the principal vehicles discussed this week in context. Hyperbola-3 is a clear step up in scale compared with RFA One, targeting higher payload classes and reusable operations. LandSpace’s recent orbital success followed by an off-target stage impact shows incremental progress: reaching orbit is a major milestone, but recovery precision remains a development task.

Reactions & quotes

“We are taking the time to do it properly. We remain aggressive, fast, and flexible, but the wild times before August 2024 are over.”

Indulis Kalnins, CEO, Rocket Factory Augsburg

Kalnins framed the company’s posture after an August 2024 hot-fire loss, stressing a balance of speed and conservatism as RFA reconstitutes its first stage and completes pad commissioning.

“This achievement is the result of years of disciplined research, engineering, and iteration.”

Elias Tsoutsanis, Chief Researcher, TII Propulsion & Space Research Center

Tsoutsanis spoke after the UAE hybrid rocket flight, positioning the test as foundational for higher-altitude and heavier-payload missions built on domestically developed propulsion.

“We need more data… I think we suspect that we’re going to sustain potential vibration damages. And what does that look like for us?”

Keith Touchberry, Cape Canaveral City Manager

Touchberry voiced municipal concerns about the potential physical effects of larger, more frequent launches on local infrastructure and property.

Unconfirmed

• Exact root cause of Zhuque-3’s final-approach failure: investigators have not publicly disclosed a definitive hardware or software cause beyond a late landing-burn anomaly.
• Precise timeline for iSpace’s first Hyperbola-3 flight this year remains tentative; company statements indicate “later this year” but no firm date has been published.
• Whether repeated SLS hydrogen leaks will require hardware redesigns rather than procedural fixes is not yet confirmed; NASA’s second rehearsal will inform that determination.
• Projected cadence and economic impact of regular Falcon 9 returns to Bahamian waters depend on ongoing environmental reviews and bilateral implementation details that are not fully public.

Bottom line

This week’s developments underscore how capital, technical iteration and regulatory agreements jointly shape the near-term launch landscape. Large funding rounds—like iSpace’s D++ close—can compress development timelines and increase flight-test tempo, but they do not eliminate the engineering challenges that cause off-target landings or hot-fire losses. Successes such as the UAE hybrid flight and SpaceX’s Bahamian recovery show progress; mixed records and unresolved failure modes show the work that remains.

For policymakers, operators and local communities, the immediate focus should be on measurable safety and environmental safeguards, transparent timelines for remediation of anomalies, and targeted investments to protect infrastructure. For launch customers and investors, the stories this week are a reminder: the industry is advancing quickly, but reliability, regulatory certainty and grounded planning will determine which providers scale profitably and sustainably.

Sources

• Ars Technica — (news roundup and original report)
• SpaceNews — (industry news; iSpace and LandSpace coverage)
• European Spaceflight — (coverage of Rocket Factory Augsburg)
• Khaleej Times — (coverage of UAE hybrid rocket test)
• NASA — (official Artemis/SLS statements and safety thresholds)
• Florida Today — (local planning and Cape Canaveral community reaction)