Canadian rocket startups Canada Rocket Company, NordSpace, and Reaction Dynamics are racing to build sovereign launch capability, backed by CAD $305 million in government funding, including CAD $8.3 million each from the Department of National Defence's Launch the North program. The push is driven by geopolitical tensions with the U.S., the militarization of space, and surging LEO satellite demand as SpaceX plans to stop booking Falcon 9 launches past 2028. Canada Rocket Company shifted from a light-lift R-1 to a medium-lift R-2 rocket carrying seven E-1 methalox engines, targeting 12,000-15,000 kg to LEO to serve Telesat's constellation needs. Two spaceports are in development in Newfoundland and Nova Scotia, with orbital launch attempts targeted for 2027-2028 and NordSpace's first suborbital test having failed in August 2025.
