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UK Invests £6.9M in Satellite & AI Projects

UK £6.9M funding for new satellite

Catenaa, Saturday, December 06, 2025- The UK Space Agency announced £6.9 million in funding for five UK-led European Space Agency Advanced Research in Telecommunications Systems (ARTES) projects, supporting satellite and AI development.

The investment targets space refueling, satellite communication, space 5G, virtual satellite networks, and optical link integration studies.

Orbit Fab will receive £2.9 million to develop in-orbit refueling for electric propulsion satellites. Goonhilly Earth Station in Cornwall is allocated £1.6 million for terrestrial communications with the LunaNet standard, while Vicinity receives £1.19 million for space 5G initiatives.

Viasat gets £881,000 for its International Virtual Satellite Operators Network Phase 2 project, and Archangel Lightworks with Eutelsat share £356,000 for a Space Optical Link Integration Study.

Space Minister Liz Lloyd said the funding strengthens the UK’s role in European space efforts, supports high-skilled jobs, and ensures communities gain access to satellite-enabled services.

UK Space Agency CEO Paul Bate emphasized the projects will advance satellite communications technology while boosting economic growth.

The government also pledged support for AI innovation through a series of AI Growth Zones, with each zone receiving £5 million to reskill local workforces and support start-ups developing AI hardware.

Secretary of State for Science, Innovation, and Technology Liz Kendall highlighted government backing as critical to creating jobs and investment opportunities.

Chancellor Rachel Reeves said the fourth AI Growth Zone reinforces the UK’s position as a leading European tech hub.

The announcement comes ahead of an expected UK budget and demonstrates continued collaboration between the UK and ESA, maintaining space and telecommunications R&D links post-Brexit.