Nayuta Space Secures Major Funding To Develop Reusable Launch System

One of China's rising commercial launch companies, Nayuta Space, has taken another crucial step toward developing a reusable rocket system.

On January 22, 2025, the company announced it had secured "tens of millions of yuan" in pre-A round funding, an investment that marks a significant milestone for its ambitious goals. The round, exclusively funded by Quanxin Investment, underscores the growing confidence in China's commercial space sector.

With 10 million yuan equivalent to approximately $1.38 million, this financial boost is set to propel Nayuta Space’s efforts toward creating a cutting-edge, reusable launch system.

Funding and Strategic Development

The company revealed that the latest funding will primarily be allocated to strengthening its team—a vital step as it scales up operations and tackles technical challenges associated with reusable rocketry. This follows a similar level of funding in January 2024, which was directed toward rocket development. By enhancing its talent pool and technical expertise, Nayuta Space is positioning itself to compete as part of China’s growing space ambitions.

Black Bird Rockets

Nayuta Space is currently developing a series of stainless steel rockets named Black Bird, inspired by a creature from Chinese mythology.

The first rocket in the series, the Xuanniao-1 (Black Bird-1), will be powered by nine Canglong-1 methane-liquid oxygen engines. These engines are being developed by Beijing Aerospace Propulsion Technology Co. Ltd., a commercial engine maker founded in 2018. The choice of methalox engines mirrors a broader industry trend toward cleaner, more efficient propulsion systems.

Reusability and Innovation

Nayuta Space’s approach to reusability sets it apart. The company plans to employ an innovative "aerodynamic recovery" method for the first stage, which minimizes fuel consumption during reentry.

Unlike SpaceX’s Falcon 9, which uses a reentry burn with three Merlin engines for deceleration, Nayuta’s approach relies on atmospheric drag and precise positioning to slow the stage naturally. By eliminating the need for a fuel-consuming reentry burn, this method could significantly reduce costs and increase efficiency.

Additionally, Nayuta Space aims to implement a "Starship chopstick-style" recovery mechanism, referred to as an "eagle grab." This system will allow the first stage to be captured by ground-based arms, eliminating the need for heavy landing legs and further optimizing mass and payload capacity.

The company claims to be the first in China to develop this aerodynamic recovery technology, though it faces competition from other emerging firms like Cosmoleap, which is planning a similar chopstick recovery system for its Leap rocket.

Second-stage recovery is also on Nayuta’s agenda, though it remains a more distant goal. The company’s current focus is on mastering first-stage recovery and achieving rapid reuse.

Current Progress and Future Plans

Nayuta Space shared a key development milestone in its January 24 press statement: a photo of the first stage fuel tank for the Black Bird-1.

This visual update signifies tangible progress as the company works toward its ambitious launch timeline.

In January 2024, Nayuta Space announced plans to launch a reusable suborbital rocket in 2025, followed by the first orbital flight of the Black Bird-1 in 2026.

While the recent funding announcement did not provide updated timelines, previous presentations indicate that the Black Bird-1 will have a payload capacity of 10 tons to low Earth orbit (LEO) when reused—a substantial capability for a commercial rocket.

China’s Expanding Launch Needs

As China embarks on building massive satellite constellations, including the Guowang and Thousand Sails projects, the demand for frequent, cost-effective launches is growing rapidly.

Nayuta Space aims to meet this demand by developing reusable rockets that can reduce launch costs and accelerate deployment schedules.

China’s Reusable Rocket Race

China currently lacks operational reusable launch vehicles, but both state-owned enterprises and private firms are racing to fill the gap.

The Shanghai Academy of Spaceflight Technology (SAST) recently conducted a high-altitude launch and landing test for the Long March 12A, though the results have not been publicly disclosed.

The development of reusable launchers aligns with China’s ambitious space strategy, which includes the deployment of two massive satellite constellations. To date, these have relied on expendable Long March rockets, but the transition to reusable systems is expected to drive down costs and enhance sustainability.

Nayuta Space is part of a new wave of Chinese commercial launch companies formed after a 2014 government policy shift.