A consortium of Canadian companies, led by NordSpace, has launched an $8 million project to develop the country’s first AI-powered hybrid additive-subtractive manufacturing line for space propulsion. The initiative, supported by $3.2 million from Next Generation Manufacturing Canada (NGen), aims to create a domestic capability for producing rocket propulsion hardware, enhancing Canada’s sovereign access to space.

This investment is significant for Canada's defence and aerospace sectors, fostering innovation and economic growth while ensuring that critical manufacturing capabilities remain within the country.

A group of Canadian companies working in advanced manufacturing has launched an $8-million consortium project. The project includes $3.2 million in support from Next Generation Manufacturing Canada (NGen) under the Advanced Manufacturing Technology Program.

NordSpace, Miltera, Pegmatis and Prime Powders are collaborating on the project.

According to a May 27 press release, the companies plan to industrialize an AI-powered hybrid additive-subtractive manufacturing line for advanced space propulsion, aimed at supporting domestic production of rocket propulsion hardware.

The project combines large-format metal additive manufacturing, AI-driven in-situ quality control, precision five-axis machining and a Canadian materials supply chain with Indigenous participation.

The resulting process chain is expected to support production of high-performance turbopumps for next-generation space propulsion systems, while also establishing a manufacturing platform applicable to hydrogen compression, clean-energy turbomachinery and other high-value rotating machinery sectors.

The project aligns with the objectives outlined in Canada’s Defence Industrial Strategy released in February 2026.

It focuses on domestic production, development of intellectual property within Canadian small and medium-sized enterprises and participation from Indigenous partners, reflecting elements of the strategy’s “Build-Partner-Buy” framework and its emphasis on resilient supply chains.