The space industry witnessed a significant focus on orbital mobility last year, with substantial investments being made in startups that are developing innovative technologies for agile satellite operations. One such startup, Magdrive, a UK-based company, has recently secured funding for its electric propulsion system designed for satellites, which promises to deliver higher thrust in a smaller form factor than existing solutions.

When it comes to designing propulsion systems for spacecraft, engineers must weigh various trade-offs. Traditional chemical-based systems offer high thrust but have low specific impulse, or efficiency, whereas electric propulsion (EP) systems are highly efficient but produce low thrust. Magdrive has developed an innovative EP system that utilizes solid metal propellant to generate high-energy plasma, achieving the same high specific impulse as chemical systems while providing a significant improvement in thrust and a reduction in mass, according to Mark Stokes, the company’s co-founder and CEO.

This breakthrough enables spacecraft operators to utilize electric propulsion for entirely new mission classes without relying on heavier and more expensive chemical thrusters. As Stokes put it, the technology will allow Magdrive to “dominate the electric propulsion market and then expand into the chemical propulsion sector.”

In a recent interview with TechCrunch, Stokes predicted that the future of the space industry will revolve around the ability to rendezvous satellites. Typically, satellites are launched with just enough fuel to maintain their orbit over the mission’s lifespan. However, more efficient propulsion systems could unlock new capabilities, such as sustained rendezvous and proximity operations for imaging or satellite servicing missions, avoidance maneuvers to reduce collision risks, and unpredictable orbits to make defense and intelligence satellites untraceable.

The concept of orbital mobility, also referred to as “dynamic space operations” by Pentagon leaders, has become a significant area of interest for the Department of Defense. Magdrive was one of six startups selected for the Space Force’s Hyperspace Challenge accelerator program last year.

One of the key advantages of Magdrive’s technology is its scalability, according to Stokes. The company’s first two products, the Rogue and Warlock systems, can be deployed in a grid to combine thrust or built in larger form factors. Magdrive is currently developing a “Super Magdrive” system, which is roughly the size of a dishwasher.

Since its founding in 2019 by Stokes and CTO Thomas Clayson, Magdrive has grown to a team of at least 20 employees and is preparing to demonstrate its first two full-scale Rogue thrusters in orbit this June. The company raised a $1.8 million (£1.4 million) seed round led by Founders Fund in 2020 and secured around $10 million in non-dilutive grants to reach its current stage. To further its development, Magdrive has closed a new $10.5 million funding round.

Magdrive views advanced propulsion as a crucial infrastructure that will enable the space industry’s continued growth in the coming years. The Rogue and Warlock systems are designed to be reusable, utilizing metals like aluminum and copper that can be found in space, which could become a key differentiator in the long term.

As Stokes explained, “We can use materials already present in space to fuel the Magdrive, whereas other propulsion systems require fuel to be brought from Earth every time. It’s like building a new train every time you leave the station, rather than building railroads.”

The new funding round was led by the Swiss fund redalpine, with participation from Balerion, Founders Fund, Alumni Ventures, Outsized Ventures, 7percent, and Entrepreneur First. Following the orbital demonstration this summer, Magdrive plans to launch a Warlock system in 2026 and a Super Magdrive in 2027.

Stokes emphasized that the key to Magdrive’s technology is its ability to enable satellites to move as much as possible within their operational life, rather than simply moving as fast as possible or lasting as long as possible. “What we’re bringing is a magnitude improvement in maneuvering capability over the five-year operational life of a satellite,” he said.