Reaction Dynamics pivots to liquid fuel for medium-lift Borealis rocket
Reaction Dynamics has raised $50 million CAD and pivoted from hybrid to liquid rocket engines, targeting a 2031 debut for its six-tonne Borealis medium-lift rocket to meet sovereign Canadian launch demand.
Reaction Dynamics has shifted its engineering approach from hybrid rocket engines to an entirely liquid-fueled alternative. The Quebec-based startup aims to accelerate development of its new medium-lift Borealis rocket, targeting a 2031 orbital debut as it seeks to fill a gap left by the sunset of SpaceX's Transporter rideshare program.
The pivot was made last year to speed the transition to heavier-lift vehicles, influenced by Canada's growing appetite for sovereign launch capability. Since the shift, the company has completed 21 hot-fire tests of its new liquid-fueled engine. Founder and CEO Bachar Elzein stated the company was founded because Canada should reach orbit on its own terms.
Borealis and Aurora program
Reaction Dynamics is pursuing a dual-track approach with two rockets built on shared underlying technology. The smaller Aurora vehicle will serve as a test bed for the larger Borealis.
| Vehicle | Payload to LEO | Target Debut | Primary Role |
|---|---|---|---|
| Aurora | ~200 kg | Q4 2028 | Technology test bed for Borealis; meets DND Launch the North requirements |
| Borealis | 6,000 kg | 2031 | Medium-lift sovereign launch capability |
Aurora is designed for payloads below half a tonne and must launch within 96 hours of notice, a requirement of the Department of National Defence's Launch the North challenge. Its first orbital launch is planned from Spaceport Nova Scotia, where Reaction Dynamics has a pad agreement with Maritime Launch Services. The company will carry Aurora's engines, avionics, flight software, and manufacturing methods over to Borealis. The medium-lift Borealis rocket is designed to haul a six-tonne payload to low Earth orbit.
Funding and growth trajectory
The company has secured approximately $50 million CAD in combined private and government funding to date. This includes an $8.3 million grant from the first round of the DND's Innovation for Defence Excellence and Security Launch the North contest.
Reaction Dynamics is now raising a Series B round of more than $70 million CAD to fund Aurora's first launch and invest in manufacturing capacity for eight Auroras annually. Jesse Mikelberg, the company's director of business development and strategy, said an additional $200 million CAD is estimated to support the transition to the Borealis program. Altogether, the new capital will support increasing headcount fivefold from 68 to more than 350 employees by 2031. The company also plans about 375,000 square feet of manufacturing and integration space in Quebec.
Market positioning and sovereign capability
With SpaceX signaling an intent to wind down its Transporter rideshare program and reportedly stopping bookings beyond late 2028, Reaction Dynamics aims to capture unmet demand. NASA classifies rockets carrying between 2,000 and 20,000 kilograms to low Earth orbit as medium-lift, placing the 6,000-kilogram Borealis near the bottom of that class. The DND has said it plans a later phase of its Launch the North challenge for medium-lift rockets carrying up to 4,000 kilograms.
The company's rockets will use storable liquid propellants, which do not require cryogenic cooling like liquid oxygen. This would allow for short-notice launches from northern sites. Reaction Dynamics wants eventually to fly Borealis 24 times a year, carrying larger satellites and full constellation batches. The company has a commercial pipeline it values at more than $5 billion US, backed by at least 10 agreements and letters of intent with prospective customers in Canada, the United States, and Europe.
Other companies, including Canada Rocket Company and NordSpace, are also part of the Launch the North challenge and have pitched medium-lift rockets. Reaction Dynamics plans to complete Aurora's first orbital launch from Spaceport Nova Scotia in the fourth quarter of 2028, using the vehicle to prove out hardware for the larger Borealis program.
