Europe Challenges SpaceX: The New Reusable Rocket by ESA and Avio is Born

Rome, October 13, 2025 – Europe challenges SpaceX in the space race. During the International Astronautical Congress in Sydney, on September 29, 2025, the European Space Agency (ESA) and the Italian company Avio signed a 40 million euro agreement for the development of a reusable upper stage demonstrator, a key technology set to reshape the future of European space launches.

The goal is ambitious: to create a system competitive with American giants, particularly SpaceX, which with its Falcon 9 and Starship dominates the global orbital launch market.

A Strategic Alliance for European Space Autonomy

The contract, lasting two years, includes the preliminary design and the definition of necessary technologies for both ground and flight infrastructures. Within a few years, the program should lead to the creation of a prototype capable of flying and re-entering the atmosphere, laying the groundwork for a new type of efficient and sustainable reusable European launcher.

ESA has released on its social channels a first conceptual rendering, showing futuristic lines similar to the American Starship: an autonomous upper stage, capable of re-entering and being reused multiple times.

“This contract is important on two fronts,” said Toni Tolker-Nielsen, ESA's director of space transportation. “In the short term, we address technological challenges, but in the long term, we lay the foundations for Europe's space future.”

Key Technologies and Industrial Impacts

The project builds on the experience accumulated by Avio with the Vega launcher and on European innovations in advanced liquid propulsion, controlled re-entry, and space vehicle recovery.

The new reusable stage could be used in future evolutions of Vega or in new European launch systems under study. The program also acts as a catalyst for the Italian industrial supply chain, confirming its technological leadership in the launcher sector.

With this initiative, Europe aims to reduce the cost of access to space, increase launch frequency, and strengthen its strategic autonomy in an increasingly competitive domain.

Europe Accelerates Innovation

The project is part of ESA's broader strategy called the “European Launcher Challenge”, a program aimed at stimulating innovation and ensuring the Union independent access to space, also through public-private partnerships.

In parallel, the agency continues with Space Rider, the reusable shuttle for low orbit missions, and with the development of Susie, the reusable stage proposal presented by ArianeGroup in 2022.

Both China and the United States continue to push the accelerator on reusability: Beijing recently updated the project of the Long March 9, its fully reusable super rocket, while SpaceX prepares for orbital-point-to-point tests of the Starship.

With the collaboration between ESA and Avio, Europe shows it does not want to remain a spectator. The future of space launches hinges on the ability to innovate, reuse, and make access to orbit sustainable – and this time, Italy will be at the forefront.