Record investment for world-leading Welsh ‘space factory’ firm

Martin Shipton

A Welsh company that is a world leader in space-based manufacturing has secured the largest funding deal in UK space technology history.

A group of investors has delivered a £22,6m funding package to Space Forge, whose headquarters is on the outskirts of Cardiff.

The investment round was led by the NATO Innovation Fund, with significant support from a strategic global consortium including World Fund, the National Security Strategic Investment Fund and the British Business Bank through its Regional Angels Programme.

By harnessing the unique conditions of space – including microgravity, vacuum, and extreme temperature differentials – Space Forge is unlocking the ability to manufacture materials that are impossible to produce on Earth.

Such innovation has wide-reaching applications in semiconductors, quantum computing, clean energy, and defence technologies.

CO₂ emissions

Research suggests space-made materials could cut CO₂ emissions by 75% and energy use by 60% in key infrastructure, offering a powerful tool for strengthening climate resilience.

The new investment will accelerate the development of ForgeStar®-2 – Space Forge’s next-generation returnable manufacturing satellite, while supporting the company’s first in-orbit demonstration mission, ForgeStar-1, set to launch later in 2025.

The revolutionary technology offers a pathway to strengthen supply chains for semiconductor production, reducing dependence on vulnerable Earth-based manufacturing systems.

Joshua Western, CEO & co-founder of Space Forge, said: “This funding marks a significant milestone-not just for Space Forge, but for the entire space economy. With the backing of our investors, we’re accelerating our mission to make space a practical and accessible platform for industrial-scale manufacturing.

“Our upcoming launches will prove that the future of materials innovation lies beyond Earth, helping us build a more secure, sustainable, and technologically advanced world.”

Technological breakthroughs

Chris O’Connor, a NATO Innovation Fund partner, said: “We are excited to be supporting Space Forge – a company that is innovating material manufacturing, while also advancing Europe’s access to space, supply chain independence and long-term resiliency. We look forward to working with the Space Forge team to leverage their technological breakthroughs in order to secure the future of NATO nations.”

Daria Saharova, General Partner at World Fund, said: “Demand for computing power is doubling every two months. Europe imports 80% of its chip supply, with 90% of the world’s most-advanced semiconductors coming from Taiwan. A geopolitical escalation there could have catastrophic consequences for Europe.

“We urgently need a resilient, homegrown supply of next-generation supermaterials required for the future of computers. “We also need this homegrown chip supply to be produced sustainably. Space Forge’s in-space manufactured semiconductors can reduce energy usage by 75%, by harnessing unique space conditions of microgravity, vacuum and low temperatures.

“We first backed Space Forge in 2021, long before the link between climate and computing was obvious. This link is clear as day now. We’re thrilled to continue supporting them as they scale, and we’re excited to welcome the NATO Innovation Fund on this journey.”

Mark Barry, Senior Investment Director at the British Business Bank, said: “We’re delighted to be following on in our investment with Space Forge. We’ve been early investors through our partners but this new investment marks our first direct deal under the programme. “Josh is one of the best leaders we have had the pleasure to work with and the team’s tenacity to ship product is commendable. We look forward to the launches later this year and being one step closer to enabling this critical technology for the UK.”

This round also includes investment from Innovation Investment Capital Limited Partnership, backed by Cardiff Capital Region, Gaingels, SpaceVC, Unruly, with additional contributions from Helium Three, Stellar and TypeOne, and London Technology Club.

‘Pioneering’

UK Industry Minister Sarah Jones said: “This is great news for the UK’s space industry, and a vote of confidence in the cutting-edge advanced manufacturing technology Space Forge is pioneering in Wales. Our modern Industrial Strategy will drive growth in these sectors even further, giving businesses the confidence they need to commit to investing in the UK and ensuring we remain a partner of choice for space agencies around the world.”

The Welsh Government’s Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans said: “Space Forge is a real space success story, providing more than 70 highly skilled technical roles and supporting another 1000 in the immediate supply chain, and we are delighted to be supporting them to realise their huge ambitions. It was fascinating to see the work ongoing at Space Forge recently and I wish them the best of luck for the launch of ForgeStar-1.”