Ex-Tesla duo raises $23M to scale satellite batteries from Australia

Sydney-based MP Space has raised a $23 million seed round to manufacture spacecraft power systems in Australia. The company was founded in early 2024 by Jay Manley and Sam Paterson, both former Tesla engineers who worked on the company’s Powerwall and vehicle battery packs. Blackbird led the round, with participation from Systemiq Capital, Speedinvest, MFV Partners, and London-based Seraphim Space, which made its first Australian investment.

Startup Daily reported that the funding will expand manufacturing capacity, broaden the product range, and grow the engineering team. Manley, MP Space’s CEO, said the company’s technology has already been selected for missions involving more than 500 spacecraft, with its first hardware launched earlier this month. The company operates from a NSW government-supported hub at Cicada Innovations, which has previously hosted other space startups.

The founders argue that spacecraft power systems have not kept pace with advances in terrestrial battery technology. Manley told Startup Daily that satellites will require more power as their capabilities grow, but the space industry has relied on custom, expensive systems. MP Space aims to apply the progress seen in electric vehicles and grid storage to orbit, designing its power systems for scalable production. The company describes its battery as software-defined, with claims about its performance relative to weight.

Blackbird partner Samantha Wong said the founders have moved quickly, delivering a working product in less than two years and achieving early deployment. She called MP Space an Australian business with potential to set a new standard for spacecraft power, citing its hardware and software strengths. Seraphim Space vice president Lucas Bishop added that increased power in orbit could enable more advanced payloads and missions. He also noted that the industry has few independent suppliers capable of delivering critical hardware efficiently, leading manufacturers to handle production in-house. MP Space’s off-the-shelf systems, he suggested, could help change this dynamic.

The round aligns with recent activity in space hardware startups, particularly those targeting gaps in the supply chain. Recent coverage included European satellite manufacturer Open Cosmos raising €300 million and Houston-based Satlyt securing $8 million for orbital AI computing. MP Space’s focus on power systems may place it in a segment with fewer direct competitors than satellite buses or propulsion. The company’s Australian base also reflects the country’s increasing activity in space hardware, following earlier reporting on startups and local hubs.

Manley said the next year will focus on scaling manufacturing, expanding the team, and delivering systems for spacecraft and constellations. The raise, he noted, reflects existing demand and provides capital to accelerate growth. For investors, the opportunity appears to be bringing the kind of standardization seen in other industries to spacecraft power—a shift that could reduce reliance on custom engineering. If successful, MP Space could become a key supplier for satellite operators prioritizing cost and speed.

What to watch is whether MP Space can maintain its momentum as it scales. The company’s first hardware launch marks an early milestone, but proving reliability and cost advantages across hundreds of spacecraft will be critical. The participation of Seraphim Space, which has ties to European and U.S. space industries, may indicate future expansion beyond Australia. For now, the seed round signals that startups—not just established players—are building the space industry’s supply chain.

Sources: startupdaily.net