🚀 Japanese space venture ispace has secured government backing worth up to $130 million to reach the Moon's south pole—one of the most challenging landing sites in the solar system. The 2029 mission could position Japan as a key player in the global race for lunar water resources.
ispace Wins Japan Space Strategy Fund: Up to $130M for Lunar South Pole Mission
On January 16, 2026, Japanese space startup ispace announced its selection as an implementing organization for the "High-Precision Landing Technology at the Lunar Polar Region" project under JAXA's Space Strategy Fund. This backing will provide up to approximately 20 billion yen (roughly $130 million) over a maximum of five years, enabling the company to officially begin developing a new lunar lander for "Mission 6," targeted for launch in 2029.
Founded in 2010, ispace has been at the forefront of commercial lunar development, from its participation in the Google Lunar XPRIZE as Team HAKUTO to its subsequent private lunar exploration missions. Following Mission 1 in December 2022 and Mission 2 in January 2025, this latest funding marks a significant new chapter for the company.
Why the Lunar South Pole: The "Cosmic Gas Station"
The Moon is believed to harbor substantial water resources in the form of ice. The south polar region, particularly in "permanently shadowed" craters where sunlight never reaches, is considered highly likely to contain preserved water ice.
This lunar water has several potential applications:
- Splitting into hydrogen and oxygen for rocket propellant
- Manufacturing fuel at a staging base for deep space exploration to Mars and beyond
- Providing drinking water for future lunar inhabitants
According to NASA data, the Moon contains significant water ice deposits that could prove crucial for the future of space exploration.
Mission 6's Three Major Challenges
ispace's Mission 6 will tackle three critical technological objectives:
1. Precision Landing at the Lunar South Pole
The lunar south polar region is considered one of the most difficult landing zones on the Moon. Several factors contribute to this challenge.
First, the terrain poses significant obstacles. The area around the south pole features numerous slopes, ledges, and rocks, making it difficult to identify safe landing spots. Additionally, the extremely low sun angle creates long shadows that complicate camera-based terrain recognition. Achieving pinpoint landing accuracy under these conditions represents a cutting-edge challenge globally.
2. Extended Surface Operations
Previous missions (Mission 1 and Mission 2) limited lander operations to the lunar daytime—approximately 14 days of continuous sunlight. Mission 6 aims to leverage the unique environment of the lunar south pole, where near-horizontal sunlight is available almost continuously, to achieve operations lasting more than 14 days. This represents a crucial step toward developing future "lunar night survival" technology.
3. Communication Relay Satellite Deployment
Direct Earth communication becomes challenging at the lunar south pole and the far side of the Moon. ispace plans to deploy a communication relay satellite into lunar orbit during Mission 6 to ensure stable communications.
This relay satellite is expected to continue operating after the mission concludes, serving as foundational infrastructure for future lunar exploration and human activities. The company is also considering developing a constellation of multiple satellites and offering data relay services.
ispace's Journey So Far
Operating under the vision "Expand our planet. Expand our future.," ispace is committed to lunar resource development. The company currently employs approximately 300 staff across three locations: Japan, Luxembourg, and the United States.
Key milestones include Mission 1 in April 2023, when ispace became the first private company to attempt a lunar landing. Although the landing was unsuccessful, the mission achieved 8 of 10 planned milestones, including reaching lunar orbit, and accumulated valuable data and expertise.
Mission 2, launched in January 2025, achieved the historic first lunar flyby by a commercial lunar lander. The June 6, 2025 landing attempt ended with communication loss just before touchdown. However, the knowledge gained from these experiences has significantly advanced the technological maturity of subsequent missions.
Future Mission Timeline
In addition to the newly funded Mission 6, ispace has announced the following planned missions:
- Mission 3 (2027): Led by the U.S. subsidiary, contributing to NASA's Artemis program
- Mission 4 (2028): Lunar landing using the Series 3 lander
- Mission 6 (2029): High-precision landing at the lunar south pole (newly funded)
CEO Takeshi Hakamada stated: "ispace's vision is to create a world where Earth and Moon function as one system, with space infrastructure supporting a sustainable economy for people on Earth. Lunar water resource exploration is the starting point for realizing this vision."
The International Race to the Moon
International competition for lunar exploration has intensified dramatically. India's Chandrayaan-3 achieved the world's first landing near the lunar south pole in 2023. JAXA's SLIM successfully landed on the Moon in January 2024, making Japan the fifth country to achieve a lunar landing.
In the United States, Intuitive Machines accomplished the first private company lunar landing in February 2024, while Astrobotic Technology continues advancing its lunar missions. China has steadily built its track record through the Chang'e series, including achieving the world's first far-side lunar landing.
Against this backdrop, ispace's challenge to achieve precision landing at the lunar south pole carries significant implications for Japan's space industry. The model of a private company receiving government-scale funding to tackle cutting-edge technology is also attracting attention as a new paradigm for public-private space development cooperation.
In Japan, there's active discussion about "embracing challenges without fearing failure" and "the potential of private-sector space development." Interest is also growing in how governments should support lunar development and the future prospects of the space business.
How is private space development progressing in your country? What's the government support structure like, and what expectations do people have for the space industry? We'd love to hear your perspective!
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Reactions in Japan
So happy ispace was selected for the Space Strategy Fund! This proves their efforts through Mission 1 and 2 have been recognized. 20 billion yen is significant, but it's a reasonable investment considering the challenge of landing at the lunar south pole.
Honestly, ispace failed landings in both Mission 1 and 2, so I have doubts about putting 20 billion yen of tax money into this. JAXA's SLIM succeeded, so wouldn't it be safer to allocate the budget there?
We've been watching ispace's challenge together with my kids. Their 'never give up even after failure' attitude is wonderful from an educational perspective. I want to celebrate their success with my children in 2029!
The lunar south pole has low sun angles creating long shadows, making optical guidance extremely difficult. As an engineer, I'm very interested in how ispace will solve this challenge. Looking forward to the evolution of the Series 3 lander.
Another massive budget for space stuff. Use it for declining birth rates or healthcare instead. Stop chasing dreams and face reality.
The model of a private company receiving this scale of national support for space development is groundbreaking for Japan's startup ecosystem. This should positively impact space ventures beyond ispace.
Lunar water resources are key to future space development. With China and India focusing on the polar region, it's strategically correct for Japan to establish presence through private companies. I hope ispace succeeds.
I'd understand 20 billion yen if it's conditional on successful landing in 2029, but isn't it problematic if no refund is required even if they fail? Should be performance-based.
I've been supporting ispace since the Google Lunar XPRIZE days. Thinking back to then, it's moving to see them receive 20 billion yen in government support. Mr. Hakamada and the whole team, do your best!
Lunar development isn't just science. For Japan, which joined the Artemis Accords, presence at the lunar south pole is important for security too. ispace's success is tied to national interests.
ispace's stock price has been falling continuously since listing. Aren't they just surviving on tax money without any prospect of commercial success? As an investor, I only see concerns.
The communication relay satellite deployment is a point not to be missed. It will become infrastructure supporting activities on the far side and polar regions of the Moon. This alone could become a business.
It's great that the precision landing technology cultivated by JAXA's SLIM is being deployed to the private sector. I hope public-private cooperation will showcase Japan's space technology to the world.
The development of 'lunar night survival' technology is so exciting. The lunar night lasts about 14 days and reaches minus 170 degrees. Technology to overcome that is amazing.
India's Chandrayaan-3 succeeded in lunar south pole landing in 2023. 2029 means 6 years behind. China and India might advance further during that time. Worried about the pace.
I love ispace's message 'Don't make Japan a country that can't fail.' A society that keeps getting back up is cooler than one that doesn't challenge anything out of fear of failure.
I think ispace has the potential to achieve private lunar landing after Intuitive Machines. This scale of investment from the Japanese government is an interesting approach similar to America's CLPS (Commercial Lunar Payload Services).
From a European perspective, I'm envious of how actively Japan supports private space companies. Coordination between ESA and member states takes much longer. Since ispace also has a Luxembourg base, I want to support them as a European too.
As an Indian, I'm proud of Chandrayaan-3's success. But the lunar south pole doesn't belong to one nation. I hope ispace's entry will create international cooperation and competition.
Getting $130M in government support after two failed landings is hard to imagine in the West. Perhaps this reflects Japan's unique public-private relationship. Revolutionary if they succeed, but they'll face criticism if they fail.
Australia's space industry is growing rapidly. ispace's challenge could become a model case for space industry development across the Asia-Pacific region. We're watching closely from the Southern Hemisphere.
From a German perspective, ispace's communication relay satellite concept is particularly interesting. ESA is also considering lunar communication infrastructure, but it's stimulating that a private company might commercialize it first.
China is steadily building achievements with the Chang'e series. It's good that Japan's private sector entry will further energize Asian space development. The balance between competition and cooperation is important.
Lunar missions are still distant in Latin America. But challenges from mid-sized countries like Japan give us hope. If Japan succeeds, maybe we're next.
I remember a Swedish artist trying to send a 'Moon House' to the Moon on Mission 2. ispace does interesting work combining art and science. I hope to see something like that in Mission 6 too.
Korea is also advancing lunar exploration. We might compete with Japan's ispace, but there should be areas where Asian space companies can cooperate. Especially communication infrastructure could be shared.
From France's standpoint, ispace's approach is interesting. The form of private-led but receiving large government support feels similar to Arianespace. It could become a new model if successful.
It's reassuring that Japan is contributing to NASA's Artemis program. If ispace's Mission 3 is related to Artemis, Mission 6's success becomes important from an international cooperation perspective too.
UAE entrusted the 'Rashid' rover to ispace in Mission 1. Unfortunately the landing failed, but we want to continue the partnership with ispace. Looking forward to Mission 6 in 2029.
Honestly, 2029 feels too late. SpaceX or Blue Origin might be sending people to the Moon by then. The small lander business model itself might become obsolete.
Cheering for ispace's challenge from Brazil! It's encouraging for emerging countries to see proof that private companies can venture into space.