Blue Origin's New Glenn rocket explodes during a test run on the launch pad in Cape Canaveral, Florida.
Officials have reported that nobody was injured during the incident.
"We experienced an anomaly during today's hotfire test. All personnel have been accounted for," the company said in a brief statement posted to X.
The explosion is the most recent set back for the company owned by billionaire Jeff Bezos, which aims to explore space.
"It's too early to know the root cause, but we're already working to find it," Mr Bezos said on X shortly after the explosion.
"Very rough day, but we'll rebuild whatever needs rebuilding and get back to flying. It's worth it," he continued.
NASA Administrator Jared Isaacman confirmed that NASA were aware of the explosion. "Spaceflight is unforgiving and developing new heavy-lift launch capability is extraordinarily difficult. We will work with our partners to support a thorough investigation of this anomaly, assess near-term mission impacts, and get back to launching rockets," Issacman wrote on X.
NASA and Blue Origin had been working together as an attempt to develop a lunar lander for its Artemis moon missions.
After Blue Origin's New Glenn rocket failed a mission to deliver a communications satellite into the correct orbit, an investigation was conducted.
The company successfully reused and recovered a booster for the New Glenn rocket, however, the mission didn't deliver the satellite from the company AST SpaceMobile. The US Federal Aviation Administration (FAA) then required that Blue Origin conducted an investigation earlier this month.
Blue origin released a statement stating that the FAA has approved their NG-3 report and the corrective measures have been implemented. They explained that the thermal conditions caused one of the rocket's engines to not achieve its full thrust, which is why it missed its target.
