There is a tendency to think of the space economy as something futuristic, defined by rockets, satellites and orbital infrastructure. But according to new analysis from Morgan Stanley, the real foundation of that ecosystem sits much closer to home. Before anything reaches orbit, it begins in the ground.
In its latest “Space 60” framework, the bank highlights a simple but often overlooked truth: every piece of space hardware is built from a complex mix of mined materials. From structural components to communication systems, satellites and rockets rely on dozens of specialised metals, making mining one of the most critical entry points in the entire value chain.
Five Miners at the Core of the Space Supply Chain
At the upstream end of this ecosystem, Morgan Stanley has identified five companies it believes are central to enabling the growth of the space economy:
- MP Materials
- Almonty Industries
- Freeport-McMoRan
- Alcoa
- Teck Resources
These companies are not space businesses in the traditional sense. They do not launch rockets or operate satellites. Instead, they supply the raw materials that make those technologies possible.
Copper, for example, is essential for high-performance rocket engines due to its thermal conductivity, while aluminum forms the structural backbone of spacecraft. Rare earth elements are used in high-performance magnets for satellites and rovers, and tungsten plays a critical role in radiation shielding and extreme-temperature environments.
The “Picks and Shovels” Strategy
What Morgan Stanley is effectively outlining is a modern version of a familiar investment principle. In a gold rush, the most reliable returns often come not from the prospectors, but from those supplying the tools.
The same logic is now being applied to space. Rather than betting solely on which launch provider or satellite company will dominate, the bank is pointing to suppliers that are essential regardless of who wins.
This reframes the space economy as a layered industrial system, not a standalone sector. Mining, materials, semiconductors and manufacturing all sit beneath the visible layer of rockets and satellites, forming the infrastructure that enables everything above it.
A Sector Driven by Geopolitics and Scarcity
The importance of these materials is not purely technical. It is increasingly geopolitical.
Many of the metals critical to space technology, including rare earths, tungsten and gallium, are heavily concentrated in specific regions, particularly China. This concentration introduces supply risk, making diversification of sourcing a strategic priority for governments and industry alike.
Companies like MP Materials and Almonty are therefore not just commercial players. They are becoming part of a broader effort to secure independent supply chains for critical technologies, from defence systems to space infrastructure.
The Space Economy’s Next Growth Phase
This shift comes at a moment when interest in the space economy is accelerating rapidly. Factors including increased launch frequency, rising defence spending and the potential IPO of SpaceX are driving renewed attention to the sector.
But what Morgan Stanley’s analysis makes clear is that the opportunity extends far beyond the companies typically associated with space. The real scale lies in the ecosystem, and that ecosystem begins with raw materials.
From Earth to Orbit
The broader implication is difficult to ignore. The future of space may be defined by innovation in orbit, but it is constrained by what can be sourced on Earth.
Every satellite, every launch system, every piece of orbital infrastructure depends on materials that must first be mined, processed and refined.
In that sense, the space economy is not detached from traditional industry. It is built on top of it.
And as investment shifts towards this next phase of growth, the companies shaping the future of space may not be the ones leaving the planet, but the ones extracting what makes that journey possible.