Yushi Space Raises $69M for Reusable Rocket Development

Yushi Space, a Chinese developer of large-capacity, low-cost, and rapidly reusable liquid-propellant rockets, has successfully closed a Series A funding round totaling 500 million RMB (approximately $69 million USD). This significant capital infusion was co-led by prominent venture capital firms Gaorong Capital and Kunlun Capital. The round also saw participation from a robust syndicate of investors including Jianfa Emerging, Blue Lake Capital, Honghui Fund, Dongzheng Capital, Zhentai Capital, and Gengxin Capital. Existing shareholders, including Zijin Mining, strategic internet investors, and smart terminal industry players, also contributed, with prior backers Hillhouse Ventures, Cornerstone Capital, Qiancheng Capital, and Zhi Sheng Rui Ying making follow-on investments.

The newly acquired funds are earmarked for critical operational advancements, including the final assembly and testing of their rockets, validation of their innovative 'chopsticks' recovery technology, scaling up manufacturing capacity, and expanding their engineering team. This strategic deployment of capital is designed to ensure the successful maiden flight of Yushi Space's AS-1 rocket and support its subsequent commercial operations. The company has been highly active in fundraising, completing four previous rounds before this Series A, bringing its total funding to over 1 billion RMB.

The commercial space sector, particularly the development of reusable launch vehicles, continues to attract substantial investor interest. Reusable rockets are pivotal for reducing per-launch costs and increasing launch frequency, which is essential for ambitious projects like large-scale satellite constellations and the burgeoning space-based economy encompassing areas like space computing and solar power. Yushi Space's approach, utilizing a stainless steel airframe, liquid oxygen-methane propulsion, and a unique 'chopsticks' capture system for recovery, positions it uniquely within China's rapidly evolving commercial launch market. This strategy aims to fundamentally alter the cost structure of space access.

Yushi Space's AS-1 rocket, a 70-meter class reusable stainless steel liquid-fueled launch vehicle, represents a significant step in this direction. Designed as a cost-effective, two-stage medium-lift rocket, the AS-1 has a liftoff weight of approximately 570 tons and a diameter of 4.2 meters. It boasts a payload capacity of 15.7 tons to Low Earth Orbit (LEO) in a disposable configuration and 10 tons when reused, targeting the mid-to-low orbit payload launch market. The company's commitment to reducing manufacturing costs begins at the material level, with stainless steel offering advantages over traditional aluminum alloys, a weight difference mitigated through advanced structural optimization and precision welding techniques.

Founder and CEO Tang Wen highlighted the company's progress in material science, stating that their self-developed stainless steel airframe costs only one-tenth that of aluminum alloy structures while achieving production efficiencies several times higher, with a lead time as short as one month. This material innovation is complemented by significant manufacturing infrastructure development. Yushi Space has established a production base in Hunan with an initial annual capacity of eight rockets, with plans for further expansion to leverage economies of scale. Their research and development footprint has also expanded, with a Beijing R&D center now exceeding 4,000 square meters, housing a new electrical comprehensive test center.

Looking ahead, Yushi Space plans to produce three rockets this year and anticipates growing its team to approximately 350 individuals to support its maiden flight in the first half of next year and subsequent scaled operations. Mr. Tang emphasizes that the future of China's commercial space industry lies not just in the ability to build rockets, but in building them affordably. He foresees a future where rockets become larger, manufacturing costs decrease, and turnaround times accelerate, transforming launch capacity into essential infrastructure that unlocks new, larger-scale applications and services. The company aims to achieve a payload cost below 20,000 RMB per kilogram for satellite constellation deployment in the next 3-5 years, a critical step towards enabling more ambitious space ventures.