A new report from the Aerospace Corporation helps elucidate why satellite companies are optimizing for Starship. It’s big and reusable, and once operational, it could cut the cost of launching a kilogram of payload into orbit by an order of magnitude from the Falcon 9. This means costs could come down from a few thousand dollars per kilogram to a few hundred.

Karen Jones, a space economist and lead author of the paper, said her research supports some of those optimistic cost projections. She outlines three scenarios, two of which assume an initial launch cost of $100 million for each fully reusable Starship and Super Heavy booster, with marginal costs of 20 or 35 percent. This is in line with the marginal costs of the smaller, partially reusable Falcon 9, which SpaceX can launch for as little as $15 million per flight on a dedicated Starlink mission.

This would bring the per-kilogram launch cost for a fully loaded Starship down to $133 to $233 after 10 reuse cycles. A more optimistic scenario with a $50 million initial launch cost and 20 percent marginal cost would reduce payload costs to $67 per kilogram for a Starship/Super Heavy launch at full capacity after nine use cycles. That’s less than it costs to fill the gas tanks of most SUVs. If SpaceX can make these more optimistic ambitions a reality, it would validate a claim made by Elon Musk in 2022 that a Starship flight could eventually cost as little as $10 million.

“I actually thought I would basically disprove that [claim], and on my first try, I got to $67 per kilogram after nine use cycles,” Jones told Ars. “It’s based upon some significant assumptions in the paper, but it’s not something that’s completely crazy. It certainly wouldn’t be something they’d reach on the first few times, on their first model; but over time, and with a learning curve, why not? I think it’s possible.