The Japanese government has updated the Space Strategy Fund’s Basic Policy and announced new technology development priorities under the fund, signaling stronger support for the country’s rapidly evolving commercial space sector.

The Space Strategy Fund was established in 2023 within the Japan Aerospace Exploration Agency (JAXA) to support long-term technological development across Japan’s space industry. The program is designed to strengthen the country’s international competitiveness while fostering innovation among private companies, universities, and startups.

Alongside revisions to the overarching policy framework, the government has also released the third phase of technology development themes funded through the Ministry of Economy, Trade and Industry (METI). These initiatives will be financed through Japan’s FY2025 supplementary budget, which allocates approximately ¥200 billion to the Space Strategy Fund, including ¥74 billion managed by METI.

The new development priorities focus on strengthening the commercial space ecosystem and responding to intensifying global competition. Key themes include accelerating demonstration launches for private rockets, improving efficiency and operational capabilities in rocket flight operations, advancing technologies related to space traffic management, modernizing satellite development and manufacturing through digital technologies, and expanding low-cost, high-frequency on-orbit demonstration opportunities using satellites.

Japan’s government aims to use the fund as a strategic tool to transform the country’s industrial structure and support the growth of its emerging New Space sector. Future funding calls are expected to be issued by JAXA, opening opportunities for startups, corporations, and research institutions to participate in new space technology development projects.

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