In-Space Manufacturing: Building Our Future in Orbit
From Concept to Reality: How Technology, Space Access, and Market Demand Are Shaping In-Space Manufacturing
For sci-fi fans like me, seeing futuristic scenes of things being built in space is unforgettable. Take the iconic post-credit scene of Andor, depicting the Death Star’s construction.
But what if I told you that this is closer to reality than you think—and rather than building planet-destroying weapons, it’s leading us toward solutions that can sustain our world?
Imagine creating rare drugs, advanced materials, and technologies that benefit Earth and push our ambitions for a space economy.
In this post, I’ll dive into one of PaperJet’s core investment themes: in-space manufacturing (“ISM”). This journey is shaped by insights from our friend at Seraphim Space and conversations with industry experts.
In-Space Manufacturing (ISM) & Microgravity
ISM leverages the unique properties of space—microgravity, near-vacuum conditions, and higher radiation—to create products that can’t be made on Earth.
Microgravity, in particular, is the game changer. In this near-weightless environment, materials mix evenly, bond precisely, and form complex structures that gravity simply doesn't allow.
However, the combination of microgravity, vacuum, and radiation can present unique challenges that must be navigated carefully, and ISM is still in the early phase of experimental validation.
Despite these challenges, microgravity opens up opportunities in key industries:
Pharmaceuticals: Faster drug discovery and more efficient development.
Semiconductors: Enhanced materials and improved efficiency for next-gen chips.
ISM’s applications are rapidly expanding to fields like defense, IT, and communications. For now, the near-term focus is on validating these applications through rigorous experimentation. The industries that stand to benefit the most are those that can leverage the unique properties of space to achieve results impossible on Earth. For those interested in diving deeper, McKinsey’s latest report offers extensive insights into this growing opportunity.
Why Now?
There’s never been a better time to capitalize on ISM. Recent advances are making space more accessible and creating unprecedented opportunities:
Affordable Access to Space: Fully reusable rockets, like SpaceX's Starship, have significantly lowered the cost of space launches. Launch costs could fall to as little as $2-10 million, with the estimated cost per kilogram dropping to $150, making space more affordable than ever for manufacturing and experimentation.
Commercial Space Stations & Expanding Infrastructure: NASA's Commercial LEO Destinations (CLD) program is backing private companies to build space stations—following the playbook that led to Falcon 9's success. This program is laying the foundation for a new private space ecosystem—from research facilities to manufacturing platforms—that will fuel industries like pharmaceuticals, materials science, and space tourism. This expanding infrastructure is crucial, enabling consistent access to microgravity for experimentation and production.
Robotic Manufacturing & 3D Printing: Advances in robotic and additive manufacturing are enabling the production of components directly in orbit, overcoming the size limitations imposed by rocket launches. Importantly, current 3D printing technology will need to evolve significantly to meet the unique challenges of manufacturing in space, where both the absence of gravity and the need to overcome it create new design considerations. This evolution will allow us to create larger, more complex structures, minimizing the need for costly resupply missions from Earth.
Broad Manufacturing Techniques: ISM includes diverse technologies—such as 3D printing and electronics manufacturing—that allow for groundbreaking products, from next-gen semiconductors to advanced medical devices. These capabilities will serve needs both on Earth and in future space missions, laying the foundation for sustainable space exploration.
Building for Space Missions: While ISM can revolutionize industries on Earth, a compelling near-term application might be for in-space needs—such as construction and life support systems. With the renewed focus on manned missions, ISM could play a key role in supporting the infrastructure needed to sustain human life in space. This makes ISM a cornerstone of sustainable space exploration, as well as a driver for terrestrial (earth) industries.
The convergence of declining costs, new space infrastructure, and evolving technologies make this the moment for ISM to thrive. Building products in space will support industries on Earth and propel humanity further into the cosmos.
The AWS Moment: Key Inflection Points for ISM
To find the “AWS moment” for ISM—the point when it becomes undeniably transformative—certain conditions need to be met. Here are the key factors:
Proven Commercial Traction
ISM must demonstrate more than theoretical potential; it needs to show real, measurable value to legacy industries. Space-made products can’t just be marginally better—they need to be revolutionary. The startups that will succeed are those that articulate how ISM solutions deliver transformative value, fitting seamlessly into existing value chains and compelling established players to adopt or partner. Importantly, ISM must be seen as the only practical solution for achieving certain revolutionary outcomes.
We’ve seen a mixed response from legacy players regarding ISM—some may prefer partnering with startups rather than making major in-house investments. Founders must make a strong case for why these companies should invest, addressing how ISM fits into corporate innovation budgets and showcasing validated customer demand. Industries like semiconductors, bolstered by initiatives like the CHIPS Act, show that traction is possible, but founders must communicate the unique benefits ISM offers, balancing scalability with space-enabled value.
Technological Milestones
For ISM to become mainstream, key technologies must be validated. We look for founders who can demonstrate proof-of-concept success—whether on the International Space Station or through suborbital experiments.
But it’s about more than proof; it’s about scalability. Can the founders move from a successful experiment to a large-scale production capability, essentially creating a “Gigafactory” in orbit? This leap from testing to scaling is a critical indicator of ISM’s viability.
Founders must also showcase breakthroughs in manufacturing techniques that leverage microgravity effectively. It’s not just about experimentation; it's about transitioning these experiments into repeatable, scalable production—turning potential into commercial value.
Infrastructure Progress
Robust infrastructure is essential for ISM's growth. Affordable and frequent access to space is becoming a reality, thanks to reusable rockets like those from SpaceX. However, ISM requires more than just launches—it needs persistent, on-orbit facilities for regular manufacturing activities. Players like Axiom Space and Sierra Space are leading the charge in building commercial space stations that will support these activities.
Reentry Capabilities: Bringing products safely from orbit to Earth is another critical logistical piece of the puzzle. While SpaceX’s Dragon capsule has demonstrated this capability, we’re also keeping an eye on emerging startups that can provide complete end-to-end space logistics, including reentry and product retrieval.
The economic viability of ISM depends heavily on keeping reentry costs manageable, with the price per kilogram of manufactured products playing a crucial role. High-value, low-mass goods, such as pharmaceuticals, are likely the best candidates for early ISM success, especially as launch costs approach thresholds—like $200/kg to low Earth orbit—where space-based manufacturing starts to become economically feasible.
Supporting technologies, like in-space communications, data processing, and energy systems, will further enhance ISM’s growth, making the case for its feasibility at scale.
Regulatory Landscape
The regulatory environment is key to ISM’s commercial future. We rely on industry experts to navigate the evolving regulatory landscape, particularly regarding bringing space-manufactured products back to Earth. Agencies like the FAA, NASA’s Commercial Cargo and Crew Program Office, and other international space authorities need to provide clear guidelines to support safe commercialization. Supportive regulations will be vital for bringing ISM products to market.
The Right Timing and Founder Fit for ISM Investment
Given these considerations, I believe the optimal timeline for ISM investments is a 10-15-year horizon—beyond the typical fund model. This is a long game requiring extraordinary patience, but one that promises immense rewards.
As a pre-seed investor, I’m prepared to invest time in finding the right founder. Conversations with Lewis from Seraphim Space highlighted a critical point: the ideal ISM founder might not come from the space industry but from industries, that ISM aims to serve, such as pharmaceuticals or semiconductors. The right founder will not only understand the technical opportunities but also possess deep industry knowledge—knowing the market inside and out, and why ISM can transform it.
While sci-fi often imagines futuristic factories on Mars or the Moon, my focus is on the immediate market potential here on Earth. How can materials manufactured in space solve problems for us today? That’s where the value lies, and that’s the market I want to support as the foundation of our investments.
Investing in space takes patient capital and a commitment to the long term. Despite the extended timeline, I’m confident about staying close to this sector because of its potential to change humanity itself. When ISM hits its inflection point, I believe it will be as disruptive as cloud computing was in its early days—transforming industries and reshaping our future.
I appreciate you taking the time to explore ISM with me. Feel free to reach out if you have any questions or thoughts—I'd love to hear from you.
Best,
Chris
P.S. Massive thanks to Lewis Alun Jones (Seraphim Space), Mark Peterson, Ray Owen (BMNT), and Jisoo Chung for their insights and feedback. And don’t forget to hit the sign-up button to stay updated on the latest trends and insights!