By Joey Roulette WASHINGTON (Reuters) -NASA has tapped startup Katalyst to save a $500 million orbiting observatory from falling into Earth’s atmosphere by launching a spacecraft meant to push it farther in space, a short-notice mission that will demonstrate space-docking technology at the center of the U.S.-China space rivalry. The U.S. space agency said on […]
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To save aging space observatory, NASA taps startup to push it farther in space

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By Joey Roulette
WASHINGTON (Reuters) -NASA has tapped startup Katalyst to save a $500 million orbiting observatory from falling into Earth’s atmosphere by launching a spacecraft meant to push it farther in space, a short-notice mission that will demonstrate space-docking technology at the center of the U.S.-China space rivalry.
The U.S. space agency said on Wednesday it awarded Arizona-based Katalyst Space Technologies $30 million to send a modified version of its “Link” spacecraft to NASA’s orbiting Neil Gehrels Swift Observatory, a spacecraft in low-Earth orbit that has been observing distant galaxies and black holes since its launch in 2004.
Maneuverable spacecraft and docking missions in orbit, seen as key for military operations and a range of satellite-maintenance concepts, are the latest advances propelled by geopolitical competition between the U.S. and China, alongside dueling efforts to send humans to the moon and court international partners.
Parked some 364 miles (585 km) high in low-Earth orbit, the NASA observatory, also known as SWIFT, has faced a gradually decaying orbit due to natural atmospheric drag, making it a prime target for a docking demonstration. SWIFT has been key to a number of astronomy discoveries.
With no onboard propulsion to scoot itself higher – and no hooks for other spacecraft to grab it – SWIFT has a 90% chance of burning up in Earth’s atmosphere by late 2026, NASA scientists estimate.
“We’re going for an unprepared satellite that wasn’t designed to be serviced,” Katalyst CEO Ghonhee Lee told Reuters. He said the mission would “show that we can go up and service any satellite, even if it doesn’t have a launch adapter ring.”
For the SWIFT mission, Lee said Katalyst will use a spacecraft it had initially intended to send on an in-house demo mission. Modifications to the craft will start next month ahead of a launch to space in May 2026, he said.
DOCKING CHALLENGES
A key challenge inherent in the small but growing industry of satellite servicing startups is building grappling or docking mechanisms that are compatible with older satellites such as SWIFT, whose design had not anticipated spacecraft visitors.
Lee said his company studied detailed designs of SWIFT, and the Link craft will have a tailored robotic mechanism. Once nearby SWIFT in orbit, it will pinch small metal rims on the observatory to secure a grip for the boost. The rims, or flanges, were used decades ago to secure SWIFT during pre-launch ground transportation.
The Pentagon will be watching closely, said Lee, who hopes to collaborate with the U.S. Space Command for additional orbital maneuvering tests following the SWIFT orbit boost.
“Obviously this is a NASA satellite, and it’s a civil space telescope that we’ll be working on here,” Lee said of the SWIFT mission. “But the implications of this when it comes to space war-fighting and space superiority are really profound.”
China this summer demonstrated two satellites orbiting in close proximity, following a 2022 test in which one Chinese satellite grappled onto and yanked another into a different orbit – alarming U.S. officials who say China could employ those tactics on American spacecraft.
The Pentagon has been seeking similar capabilities, though many of its space maneuvering efforts are shrouded in secrecy.
Katalyst’s in-space services business stems from its acquisition in April of Colorado-based Atomos Space and it has invested $25 million into the Link spacecraft business, Lee said. Cost per spacecraft, he said, is targeted to be far lower than traditional satellites that have cost hundreds of millions of dollars.
“Our target for routine production of robotic spacecraft is high-single-digit millions, or low-double-digit millions,” Lee said, declining to name a specific figure.
(Reporting by Joey Roulette; Editing by Lisa Shumaker and Jamie Freed)