UK Space Race Heats Up as Skyrora Eyes Ailing Rival Orbex’s Assets

In a significant potential consolidation of the UK’s emerging space launch sector, Glasgow-based Skyrora has announced its interest in acquiring key assets from its financially troubled rival, Orbex. The move includes the strategically important, yet currently paused, Space Hub Sutherland. This declaration came just a day after Moray-based Orbex filed a notice of intent to appoint administrators, following the collapse of fundraising and merger talks.

A Rival’s Lifeline or a Strategic Acquisition?

Skyrora has put forward a “preliminary expression of interest,” signaling its readiness to invest up to £10 million ($13.6 million) to acquire select Orbex assets. The company emphasized that such a move would be vital for preserving the UK’s sovereign launch capability, protecting national infrastructure, and ensuring that technology developed with UK taxpayer money remains under British ownership. Dr. Jack-James Marlow, COO at Skyrora, stated, “As the only UK company with a domestic launch licence and both manufacturing and testing capabilities, Skyrora is best placed to take over Orbex’s assets.”

Orbex, founded in 2016, had been developing its Prime micro-launcher, touted as an advanced, low-carbon rocket, and was nearing test launches planned for later in 2026. However, after years of delays and mounting development costs, the company failed to secure a crucial Series D funding round, leading to its current predicament which puts approximately 163 jobs at risk.

The Sutherland Prize and Shifting Strategies

A key asset in the potential deal is the Space Hub Sutherland on Scotland’s north coast. Construction on the site, which was projected to create hundreds of jobs and generate nearly £1 billion for the regional economy over 30 years, began in 2023 but was halted by Orbex in late 2024. The company had decided to shift its initial launch operations to the SaxaVord Spaceport in the Shetland Islands, while retaining the lease for Sutherland for future flexibility. Skyrora’s interest could revive the mainland spaceport, a critical piece of infrastructure for the UK’s space ambitions.

The European Context: A Race for Access to Space

The struggles of Orbex unfold against the backdrop of a broader European push for independent access to space. The European Space Agency (ESA), of which the UK remains a member, initiated the European Launcher Challenge in late 2025, committing over €900 million ($972 million) to bolster the continent’s launch capabilities. Orbex was one of five operators selected for this initiative, a program designed to ensure Europe is not solely reliant on its Vega C and Ariane 6 rockets. The other selected companies are:

• Isar Aerospace (Germany)
• Rocket Factory Augsburg (Germany)
• MaiaSpace (France)
• PLD Space (Spain)

Orbex’s potential exit from this group underscores the intense financial pressures facing space startups. While the company will continue to trade as administrators explore options, including a sale of the business, its future remains uncertain. This situation could either lead to a stronger, consolidated UK launch champion in Skyrora or serve as a cautionary tale about the volatility of the capital-intensive space industry, even with significant institutional backing.