Before going public for a record $1.77 trillion, SpaceX detailed plans in its S-1 to build a lunar economy by setting up factories on the Moon to manufacture AI satellites. For Musk’s vision to become a reality, someone needs to figure out how to transport equipment to the Moon, generate electricity there, and keep communications lines connected to Earth.
NASA is putting money on the table to do this on a large scale. The federal space agency announced Nov. 7 that it had selected eight companies, including SpaceX, Blue Origin and Lockheed Martin Space, to compete for contracts worth up to $10 billion to transport equipment and infrastructure to the Moon. It’s part of NASA’s goal to build a permanent lunar outpost for astronauts.
“We are building the Moon base mission by mission,” NASA Administrator Jared Isaacman said in the announcement. “When our astronauts return to the Moon, they will arrive with the first elements of the lunar base already waiting for them on the surface.”
The billions in potential contracts show how intertwined the ambitions of federal space programs and the private space sector have become, even as they pursue distinct goals, with NASA focused on creating a place where astronauts can live and work, and SpaceX eyeing lunar space for manufacturing.
NASA declined to comment and SpaceX did not respond. Fortunerequest for comment.
Build a Moon Base
NASA wants to build its first permanent outpost on the Moon, starting with its first phase of robotic explorations of its south pole to identify promising locations for future infrastructure in 2029, according to its Moon Base website.
Then, between 2029 and 2032, NASA plans to build power systems, cargo transportation and communications networks to “support long-term operations” on the Moon. After 2032, the agency will work to make the outpost habitable for astronauts so they can conduct more ambitious research and take “future voyages deeper into the solar system.”
The challenge of getting equipment and supplies there is why NASA is seeking outside help. He said the eight companies selected under the Commercial Lunar Payload Services program will be eligible to compete for lunar delivery missions over the next decade, building and operating landers to carry scientific instruments, technology and other infrastructure.
This is in addition to NASA’s existing Moon-related contract program. NASA said it awarded Blue Origin, Impulse Space and Arrow Science and Technology a total of $1.3 billion for separate mission tasks. These tasks include checking communications systems between the Moon and Earth, finding ways to move cargo between the two, and sending drones to monitor the lunar surface before astronauts get there.
NASA is also trying to solve the problems of generating electricity and maintaining communication lines. It has chosen SpaceX to launch satellites aboard spacecraft into space in 2028 to test technology that will help astronauts and mission controllers stay connected. The agency also contracted several companies (including Blue Origin-owned Honeybee Robotics) to work on power generation and wireless power transfer for a mini-communications and solar tower (miniCAST) project.
Musk’s space ambitions
But for SpaceX, these contracts could ultimately pave the way for space operations beyond sending astronauts and cargo to the Moon. In its S-1, the company announced plans to build factories on the Moon that would use raw materials mined from the Moon to make AI satellites, while also shipping chips from Earth.
SpaceX said using these lunar materials and exploiting the Moon’s lower gravity could “significantly reduce costs and Earth resource constraints.” SpaceX is also considering a “lunar mass engine,” which would use “electromagnetic acceleration” to propel satellites without rockets. SpaceX also sees a business opportunity in mining and exporting lunar minerals, estimating that the Moon contains more than a million tons of “rare materials” that could be used in quantum computing systems and nuclear power.
But the company’s main goal appears to be establishing a constellation of satellites capable of performing AI calculations in space, which could allow the company to expand its computing capacity without relying on controversial, power-hungry data centers on Earth.
“This roadmap positions the Moon not only as a potential gateway to Mars and space exploration, but also as the first large-scale space industrial economy,” the S-1 said. “Over time, this infrastructure has the potential to position the Moon as a strategic hub for industry and transportation.”
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