Quebec Government Invests $10 Million in Reaction Dynamics' Rocket Initiative

On June 9, 2025, Quebec Premier François Legault announced a significant investment of CAD $10 million (approximately USD $7.3 million) for the Canadian startup Reaction Dynamics, along with its partner, software developer Maya HTT. This funding is earmarked to advance the development of a hybrid propulsion system, crucial for the startup's ambition to manufacture a rocket capable of launching satellites weighing up to 200 kilograms into low-Earth orbit.

In a news conference streamed on Facebook, Premier Legault emphasized the importance of this investment in fostering local capabilities within Quebec's aerospace sector. He stated, "Our proposal is a fast service dedicated to satellite operators in the commercial and defense sectors," underscoring the strategic necessity of developing sovereign space systems amid rising global geopolitical tensions.

Founded in 2017, Reaction Dynamics aims to conduct its first suborbital flight by late 2025, with plans for orbital launches following in 2027 or 2028. According to Bachar Elzein, CEO and Chief Technology Officer of Reaction Dynamics, the company is committed to ensuring that every component of the hybrid propulsion system is produced in Quebec, aligning with provincial efforts to enhance local technological sovereignty.

The funding breakdown allocates CAD $8 million to Reaction Dynamics and CAD $2 million to Maya HTT, which will develop simulation tools to optimize engine performance. Christine Fréchette, Quebec's Minister of Economy, Innovation, and Energy, remarked that this investment positions Quebec as a potential leader in the global aerospace industry, while also highlighting the necessity for Canada to develop independent satellite launch capabilities.

Mélanie Lussier, President and CEO of Aero Montreal, praised the funding initiative, stating, "This investment will ensure Canada’s technological sovereignty. Until now, to launch a satellite, Canada had to rely on the platforms of other nations." Legault further articulated the geopolitical implications of the investment, suggesting that countries like Canada could no longer depend solely on international allies for defense, referencing the unpredictability of U.S. leadership under former President Trump as a concern.

The decision to fund Reaction Dynamics aligns with broader national objectives to enhance Canadian capabilities in both civil and defense space applications. The hybrid propulsion system, once fully developed, promises to provide a cost-effective alternative for satellite operators, likened to the service of a private jet but at economy-class prices.

In summary, this investment not only supports the growth of a promising Canadian startup but also aims to secure Quebec's position in the competitive landscape of the aerospace industry, fostering a self-reliant and technologically advanced space sector in Canada.