The Japanese aerospace company Mitsubishi today announced that Japan’s Space Strategic Fund has awarded it a subsidy of an undisclosed amount to its develop its own orbital tug.

The goal is to develop an OTV [orbital transfer vehicle] that can respond flexibly to user needs, navigate between orbits, and load and release payloads in space without being limited to specific applications or transport routes. The company also aims to verify the feasibility of autonomous rendezvous, proximity operations and docking (RPOD) using physical AI and robotics for the safe and effective capture, handling and release of payloads in space.

The Space Strategic Fund was created by the Japanese government in 2023 as a ten year $6.6 billion program to encourage the growth of a private Japanese space sector, to essentially transition Japan from a government space program run and owned by its space agency JAXA to a independent and competing private sector, following the capitalism model.

That fund however was given to JAXA to manage, and so far it appears it has not moved aggressively to promote an independent sector. Inside, the awards it has given out so far have mostly been to either fund its own programs, or help its big space partners, such as Mitsubishi. This could change of course as privately-owned spacecraft begin garnering customers outside of JAXA. It is however taking a long time, and meanwhile Japan’s space industry continues to trail badly both China and India, and even South Korea. While these Asian companies are developing multiple rockets and spacecraft, Japan presently has no operational rockets, and its commercial space sector is barely alive.