Space-based factories: The future of manufacturing may be outer space

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  Quantumrun Foresight
• July 31, 2023

Insight highlights

Low-Earth orbit (LEO) offers a unique environment that allows for producing specific materials at higher volumes and quality than on Earth. Startups, backed by significant funding, plan to establish automated manufacturing facilities in space, while other firms are exploring partnerships for space-based manufacturing in fields like biotechnology. However, the wider implications of these initiatives include the emergence of new industries and job roles, potential environmental and geopolitical challenges, and the necessity for comprehensive space law.

Space-based factories context

The region of space nearest to the Earth's surface offers a more conducive environment for producing specific materials, such as semiconductors and synthetic proteins, compared to Earth itself. This phenomenon is due to features like microgravity and superior vacuum conditions, which could enhance production in volume and quality. Several businesses within the space sector are exploring ways to leverage these benefits by overcoming limitations inherent to terrestrial manufacturing.

In 2021, Varda Space Industries successfully secured USD $42 million in a Series A funding round, leveraging the unique characteristic of microgravity. The startup aims to launch its first space-based manufacturing facility as early as 2023. The goal is to manufacture specific products which cannot be replicated on Earth due to their dependence on prolonged periods of weightlessness. A significant component of Varda's strategy involves full manufacturing process automation. The company can significantly cut down on essential costs by eliminating human involvement at this stage.

Companies are also partnering to fast-track advancements in space-based manufacturing. In 2021, Sierra Space signed a deal with microgravity firm Space Tango to explore potential use cases of microgravity in biotechnology, including producing artificial retinas, fiber optics, and carbon nanotubes. The strategic partnership opens up Space Tango’s suite of automated facilities to Sierra Space’s customers, including NASA.

Disruptive impact

The weightlessness of space offers a unique environment that has the potential to improve the quality of various products. For instance, the absence of gravity could prevent unwanted contaminants or changes in the chemical structures of space-made pharmaceuticals. Similarly, producing alloys in space could eliminate gravity-induced sedimentation, leading to more homogeneous and potentially superior materials.

The benefits of manufacturing in space extend to crystal growth as well. Under the influence of microgravity, crystals could grow in a more uniform and controlled manner, which can significantly impact electronics and optics where crystal quality dictates product performance. Moreover, as the costs associated with space transportation continue to decrease, in-space manufacturing may transform from a mechanism for enhancing product quality into a cost-effective alternative. 

Due to the potential of space-based manufacturing and construction, space agencies and companies may collaborate to fund startups specializing in this field. For example, in March 2023, the National Aeronautics and Space Administration (NASA) awarded Redwire USD $5.9 million to complete the design of FabLab, an in-space manufacturing system. FabLab is designed to be tested onboard the International Space Station (ISS) and advance in-space manufacturing ahead of Artemis missions to the Moon and Mars. 

Implications of space-based factories

Wider implications of space-based factories may include: 

• The creation of new industries, such as space mining, manufacturing, and even tourism. Moreover, these factories would stimulate diversification of the economy, reducing reliance on earth-based industries and expanding human economic influence beyond our planet.
• New machinery and equipment that can operate in unique space conditions, such as microgravity and extreme temperature fluctuations. These advancements could potentially have spin-off benefits for Earth exploration, such as the deep sea.
• New roles in manufacturing and logistics industries. There may be a growing need for professionals trained in space science, engineering, and construction.
• Reduced demand for terrestrial resource extraction and associated environmental damage. However, space-based factories may also raise new ecological concerns, such as space debris and pollution from rocket launches. Strict environmental regulations and effective debris management strategies will likely be crucial.
• Increased competition and geopolitical conflict over resources and territory in space. This development could lead to new international treaties and laws governing space activity. Moreover, nations and corporations may need to invest more in space defense technologies, potentially leading to a space-based arms race. 
• The establishment of permanent human settlements in space, changing human demographics significantly and presenting new challenges and opportunities in healthcare, education, and social services.
• Enhanced semiconductors and microchips that can fast-track the development of quantum computing and artificial intelligence.
• An increased need for comprehensive space law to regulate commercial activities. Additionally, issues such as property rights, corporate responsibilities, liability, and safety may need to be addressed.

Questions to consider

• What other products might be better manufactured in space?
• How can space-based manufacturing affect future factory workers?