Orbex, a British space company based in the Scottish Highlands, is on the verge of collapse, placing 150 jobs at risk and casting doubt on the UK's space ambitions. The startup had received £26 million in taxpayer-funded loans last year.
The company was planning to launch the first homegrown rocket from Scotland, with test flights expected in 2026. However, a rescue deal or fresh funding has failed to materialise, and administrators are being lined up.
Orbex had been in talks for additional investment from the Treasury-backed National Wealth Fund, but those discussions fell through at an early stage last year. A potential German buyer, The Exploration Company, also did not result in a deal.
Chief executive Phil Chambers expressed disappointment, noting the capital-intensive nature of rocket development and a funding gap that institutional support is meant to bridge. He said the company was on the cusp of first test flights later this year.
Business secretary Peter Kyle approved £20 million in loans in January 2025, and technology secretary Liz Kendall added £6 million last summer to support a European Space Agency contract. The launch was to be from SaxaVord on the Shetland Islands, after shelving a planned Highland spaceport.
A government spokesperson said they remain committed to the space sector but acknowledged that some companies will succeed while others fail. They plan to set out details for developing national space capabilities in due course.
