Michigan Awarded $3.5 Million to KMI Space for Project

The funding supports the development of a spacecraft designed to manage and relocate satellites in orbit.

Updated on Oct. 14, 2026 in Space

Michigan Awarded $3.5 Million to KMI Space for Project

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Michigan has awarded $3.5 million to KMI Space for the development of its Laelaps spacecraft, which aims to extend the operational life of satellites. The project is part of a broader $23 million state investment intended to leverage federal funding for innovation.

Why it matters

The Laelaps spacecraft is intended to rendezvous with, retrieve, and relocate satellites, which could reduce the cost and frequency of replacement missions. This development helps the state secure federal resources to build local aerospace capabilities.

The KMI Space project utilizes $34 million in funding from the SpaceWERX program to develop autonomous orbital rendezvous capabilities. This initiative is expected to add 60 jobs at the company's Marquette facility.

The players

KMI Space

An aerospace company based in Marquette that focuses on orbital satellite management and maintenance technology.

SpaceWERX

The innovation arm of the U.S. Space Force that provides strategic funding and partnership opportunities for aerospace startups.

The details

The Laelaps spacecraft performs complex orbital maneuvers to retrieve and relocate existing hardware, effectively extending the mission lifecycle of valuable assets. By utilizing support from the U.S. Space Force innovation arm, the project aligns state-level investment with national defense and aerospace technology goals.

On October 14, 2026, the Governor announced the state investment projects.

The Big Picture

This project follows a pattern set by the SpaceWERX Strategic Funding Increase program to modernize satellite infrastructure through public-private partnerships. It signals a shift toward reusable orbital logistics rather than single-use satellite deployments.

The investment is expected to create 60 jobs in Marquette and contribute to a total of 1,000 new positions across nine statewide projects. These efforts aim to stabilize local employment in high-tech manufacturing sectors.

The takeaway

Developing autonomous retrieval technology for satellites could fundamentally lower the overhead for orbital missions. Local manufacturing facilities will play a key role in testing and assembling these advanced space logistics platforms.