On Monday, June 1, executives from six of Canada’s aerospace and space companies appeared before the House of Commons Standing Committee on National Defence (NDDN) to discuss the impact of the new Defence Industrial Strategy (DIS). While the committee heard from aerospace heavyweights Pierre Seïn Pyun of Bombardier and France Hébert of CAE, it was the unified front presented by Canada’s launch startups that spoke to sovereign launch while MDA Space spoke to procurement reform.
Witnesses from MDA Space, Canada Rocket Company, NordSpace, and Reaction Dynamics painted a picture of an industry ready to propel Canada into a new era of defence and economic security—provided the government can reform its procurement culture and commit to domestic companies as an anchor customer.
“Buyers or builders?” The push for sovereign launch
A central theme of the testimony was Canada’s status as the only G7 nation without a sovereign orbital launch capability. With global launch capacity heavily bottlenecked and dominated by foreign entities, domestic startups are racing to fill the void, bolstered in part by the Department of National Defence’s Innovation for Defence Excellence and Security (IDEAS) Launch the North program.
Rahul Goel, Chief Executive Officer of NordSpace, challenged the committee to view sovereign launch not as a scientific experiment, but as an urgent operational necessity. His vertically integrated company is currently expanding a spaceport in Newfoundland and Labrador, with suborbital launches planned in this year and orbital launches targeted for 2028.
“Today, we have a choice to make and a narrow window of opportunity to make it,” Goel told the committee. “Will Canada choose to be a participant or a leader in space? Will we choose to be buyers or builders? … In a crisis, we cannot assume that launch capability elsewhere in the world will be available or even prioritized for Canadian needs.”
Hugh Kolias, Chief Executive Officer of Canada Rocket Company, emphasized the immense economic upside of capturing the medium-lift launch market, which he noted could be worth up to $20 billion by the mid-2030s. He credited government signalling for unlocking substantial private capital for his firm but laid out clear next steps for long-term viability.
“To scale from the foundation laid by the IDEAS program to a fully operational medium-lift capability, we require three strategic commitments from the Government of Canada: anchor demand… continued co-investment in development… and regulatory alignment,” Kolias stated. “The strategic question is, will Canada possess the freedom of action required to protect its sovereignty, security, and economic prosperity of the future?”
Bachar Elzein, Chief Executive Officer of Reaction Dynamics, echoed the need for government support but heavily stressed the importance of domestic competition. His company, which focuses on storable stable propellants to offer operational flexibility, is preparing for its first flight and aiming for orbit by the fourth quarter of 2028.
“We treat defence as a use case. It is not. Defence is an enabler,” Elzein noted, highlighting how space assets underpin civilian banking, agriculture, and emergency services. He warned against sole-sourcing to a single national champion, adding, “Competition creates heat. Heat creates value… A strategy that builds national champions still needs more than one contender behind each capability.”
Procurement culture change
While the new Defence Industrial Strategy was widely praised as a necessary step, Mike Greenley, Chief Executive Officer of MDA Space, warned that the policy will fail without a massive cultural shift within government procurement channels.
As Canada’s largest space company, MDA Space is currently building a facility capable of producing 400 satellites a year—yet every single one of those satellites must currently be launched outside of Canada. Greenley noted that while the new Defence Investment Agency (DIA) offers a pathway to faster procurement, institutional resistance remains a barrier.
“We are seeing some early signs that this cultural shift is taking shape, but also signs of early resistance as procurement teams flinch and revert to old ways of buying from foreign countries and foreign companies,” Greenley testified. “Executive levels of government must stand in and flow down the policy in the 10 sovereign capability areas and reinforce that building with Canadian firms is mandatory and it begins now.”
Committee Q&A: The true cost of losing space
The high stakes of space infrastructure were brought into sharp focus during a key exchange between MP Viviane Lapointe and Mike Greenley. Lapointe questioned the tangible vulnerabilities Canada faces if space-based capabilities are ignored.
MP Viviane Lapointe:
“When people think about critical infrastructure, we think about roads and bridges and energy systems. We don’t always think about space. How much of Canada’s economy and security now depends on space-based infrastructure, would you say?”
Mike Greenley (MDA Space):
“A significant amount. There are estimates that would say that if we lost access to the global positioning system, for example, that that would cost the Canadian economy $1 billion every day. So very, very significant. So for Canada to really get into our own lexicon that space is critical infrastructure and that space is dual use… that lets you say, ‘Okay, I’m going to spend money on space as critical infrastructure for observation, communications, global positioning, timing for banks.’ All these different areas that is dual use, which means it can then therefore account towards my defence spending and my 5% target.”
Hugh Kolias later expanded on Greenley’s point, noting that estimates suggest GPS-dependent systems underpin over 20 per cent of the national GDP. “Even power systems, if they go without timing and GPS, which is essentially electricity… that would be a substantial hit to the economy,” Kolias added.
Looking ahead
As the meeting adjourned, the witnesses consensus was evident: the Defence Industrial Strategy provides the necessary blueprint, but aggressive implementation is required. With Canadian launch startups testing hardware and primes like MDA Space scaling up manufacturing, the domestic space industry has signalled it is ready to deliver. The question remaining for Parliament is whether the government’s procurement apparatus can move fast enough to capitalize on the momentum.