GERMANY AWARDS €1.7 BILLION SATELLITE RECONNAISSANCE CONTRACT TO RHEINMETALL-ICEYE JOINT VENTURE
KOBLENZ, Germany -- The German Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) has awarded a major space reconnaissance contract to a joint venture established by Rheinmetall AG and the Finnish satellite operator ICEYE. The agreement, valued at approximately EUR1.7 billion, commissions the provision of space-based reconnaissance data through a dedicated constellation of Synthetic Aperture Radar (SAR) satellites. Designated as "SAR Space System for Persistent Operational Tracking Stage 1," or SPOCK 1, the program is scheduled to run from the end of 2025 through 2030, with further options for extension.
The partnership, operating under the name Rheinmetall ICEYE Space Solutions, is a strategic collaboration in which Rheinmetall holds a 60% majority stake and ICEYE maintains the remaining 40%. Headquartered in Neuss, Germany, the joint venture will manage the complete lifecycle of the satellite service, including mission operations, ground station management, and the use of artificial intelligence for automated image evaluation. The satellites themselves remain the property of the joint venture, which will provide the German military with exclusive, high-volume access to radar imagery. Production of the first satellites under this partnership is expected to begin at the Neuss facility in the third quarter of 2026, marking a transition for the site from civilian automotive parts to military space technology.
SAR technology provides a distinct tactical advantage by utilizing radar pulses rather than sunlight to observe the Earth's surface. This allows the satellites to penetrate cloud cover, smoke, and inclement weather, delivering high-resolution imagery with a precision of up to 16 cm regardless of light conditions. The system is specifically intended to provide persistent tracking and tactical intelligence for the German "Lithuania Brigade," a permanent military deployment tasked with securing NATO’s eastern flank. By maintaining a sovereign and dedicated constellation, the German Armed Forces can ensure rapid, independent data delivery to decision-makers in high-stakes environments.
This project represents a critical shift toward "New Space" defense strategies, where governments invest in resilient constellations of small satellites rather than single, vulnerable platforms. By establishing a domestic production hub and securing exclusive data rights through a 60/40 joint venture, Germany is reducing its reliance on foreign commercial providers and enhancing its strategic autonomy. This capability is vital for the security of the Baltic region, where heavy cloud cover often renders traditional optical surveillance ineffective, making all-weather radar a necessity for monitoring potential border movements.