Next Generation Manufacturing Canada (NGen) announced that it is supporting an industry consortium project valued at more than $8 million to develop Canada’s first AI-powered hybrid additive-subtractive manufacturing line for advanced space propulsion systems. The initiative includes $3.2 million in funding from NGen through its Advanced Manufacturing Technology Program and is led by Canadian space launch company NordSpace alongside Miltera, Pegmatis, and Prime Powders.
The consortium will industrialize a domestically owned production capability designed to manufacture rocket propulsion hardware at the cost, speed, and quality necessary to support routine sovereign access to space. The project combines large-format metal additive manufacturing, AI-powered in-situ quality control, precision five-axis machining, and a Canadian materials supply chain that includes Indigenous participation.
According to the consortium, the integrated manufacturing platform will enable the production of high-performance turbopumps for next-generation rocket propulsion systems. The technology is also expected to have applications beyond aerospace, including hydrogen compression, clean-energy turbomachinery, and other advanced rotating machinery sectors.
The project aligns with the objectives outlined in Canada’s Defence Industrial Strategy, released in February 2026. By developing domestic manufacturing capabilities, retaining critical intellectual property within Canadian small and medium-sized enterprises, and strengthening resilient supply chains, the consortium aims to support Canada’s long-term industrial and defence priorities.
Canada’s Minister of Industry, Mélanie Joly, said the investment advances the country’s sovereign space capabilities while helping strengthen domestic supply chains and manufacturing competitiveness. She noted that the initiative demonstrates the implementation of the Defence Industrial Strategy through innovation-driven economic development.
Michael Ma highlighted the importance of investing in sovereign production capacity as global trade conditions continue to evolve. He said supporting companies that integrate artificial intelligence into Canadian manufacturing systems positions the country to compete in emerging space markets while advancing national industrial priorities.
NGen CEO Jayson Myers described the investment as an important step toward building sovereign Canadian manufacturing capabilities for space propulsion. He said the project combines advanced manufacturing technologies with broad ecosystem participation to create both immediate industrial outcomes and long-term strategic value for Canada’s defence and space sectors.
NordSpace Chief Executive Officer Rahul Goel emphasized that sovereign access to space depends on sovereign manufacturing capabilities. He noted that the company’s planned Tundra rocket program requires advanced production methods for flight-grade hardware that have not previously existed within the Canadian supply chain.
Miltera President and CEO Michael Blackburn said the company will contribute its expertise in turbomachinery manufacturing and ultra-precision machining to help bridge the gap between additive manufacturing and flight-grade propulsion hardware.
Pegmatis Co-Founder and COO Ron Cassar said the company’s AI-driven manufacturing platform is designed to improve precision, traceability, accountability, and quality control across high-value industries. While initially focused on space propulsion applications, the technology is intended to support a broad range of advanced manufacturing sectors.
Prime Powders President and CEO Jimmy Scott said the company’s participation includes an exclusive strategic partnership with an Indigenous community to strengthen Canadian supply chains, support employment initiatives, and establish revenue-sharing opportunities. He added that the project will help replace imported aerospace-grade metal powders with domestically manufactured alternatives while promoting workforce development and economic growth.
NGen, Canada’s Global Innovation Cluster for Advanced Manufacturing, said the initiative demonstrates how advanced manufacturing technologies can be commercialized through collaboration between industry partners, researchers, and policymakers while strengthening Canada’s industrial competitiveness.
KEY QUOTES:
“The Government of Canada’s investment in this project helps advance the country’s sovereign space capabilities and is an example of putting the Defence Industrial Strategy into action. Through this initiative, NGen is harnessing Canadian ingenuity and Canada’s world-class workforce to build a robust, sovereign supply chain, enabling our manufacturers to compete globally, strengthen our defence economy and ensure the economic benefits of innovation reach communities across our country.”
Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“As our global trading environment undergoes dramatic shifts, it is mission critical for Canada to invest in its sovereign production capacity. Frontier use cases with blue ocean potential are where we need to double down, and the Government of Canada is showing immense foresight by focusing on access to space. By supporting companies that are threading AI into a domestically integrated production system geared toward sovereign launch capabilities, the government is charting a course for Canada to compete in the next frontier. As the MP for Markham–Unionville, I am thrilled to see local companies operating as advanced-manufacturing champions for Canada’s Defence Industrial Strategy.”
Michael Ma, Member of Parliament for Markham–Unionville
“This investment from NGen marks a significant step forward in building sovereign Canadian advanced manufacturing capability for space propulsion. By combining AI-powered hybrid additive-subtractive technologies with strong ecosystem participation, this project delivers both immediate results and long-term strategic value, strengthening Canada’s defence and space industrial base while creating transferable capabilities across high-value sectors.”
Jayson Myers, CEO, NGen
“Sovereign access to space is impossible without sovereign manufacturing. Launching NordSpace’s Tundra rocket on an aggressive timeline demands novel advanced manufacturing for flight-grade hardware that no Canadian supply chain has previously produced. Working alongside our consortium partners, NordSpace is helping prove that Canada can build the most demanding components of next-generation launch propulsion entirely at home, by Canadians, for Canadians.”
Rahul Goel, Chief Executive Officer, NordSpace Corp.
“Miltera is proud to be a world leader in turbomachinery manufacturing technology and extreme precision applications. Through this consortium, we are helping bridge the gap between additive manufacturing and flight-grade propulsion hardware by combining advanced 5-axis machining, automation, and metrology to deliver the precision, repeatability, and scalable process capability needed for sovereign Canadian launch.”
Michael Blackburn, President & CEO, Miltera Machining Research Corp.
“Pegmatis is building a proprietary, AI-driven platform that brings new intelligence to manufacturing and reinforces Canada’s role as a global innovator. While initially focused on components critical to space launch propulsion systems, the platform is designed for any high-value industry where precision, traceability, and accountability are critical. By integrating advanced manufacturing processes with real-time data insight, we enable full visibility, auditable workflows, and consistent quality at scale.”
Ron Cassar, Co-Founder & COO, Pegmatis Inc.
“Prime Powders Inc. is participating in this NGen project in an exclusive strategic partnership with the Indigenous community to help secure Canadian supply chains, create Indigenous employment initiatives and revenue-sharing agreements empowering local communities. We are replacing import dependency with Canadian-manufactured, certified aerospace-quality metal powders. This project will help ensure supply-chain resilience, skills training, and sustainable community-centred economic development.”
Jimmy Scott, President & CEO, Prime Powders Inc.
