Major German defence contractor Rheinmetall has secured a contract worth €1.7 billion with the German armed forces, or Bundeswehr, for its new space satellite business, the company announced on Thursday.
The multi-year contract with the Bundeswehr's procurement office includes an expansion option.
The deal concerns access to space-based reconnaissance data provided by Synthetic Aperture Radar or SAR satellite.
Each day, the Bundeswehr is to receive a large number of images, made available at short notice. They come from the currently 62 satellites operated by the Finnish company ICEYE which cooperates with Rheinmetall. More satellites are to be added in the future.
Images from these spacecraft are considered particularly precise, even in bad weather and at night. Data analysis is intended, among other things, to help protect the new Bundeswehr brigade in Lithuania and, more broadly, NATO's eastern flank.
In its satellite business, Rheinmetall will work with the Polish tech company Satim, which will handle data analysis using artificial intelligence. Large volumes of complex radar images will be converted into usable information.
Tank maker looks to the skies
Rheinmetall primarily manufactures tanks, ammunition and artillery. The war in Ukraine has significantly increased demand for such military goods, and the Dusseldorf-based defence company's order books are fuller than ever.
The Ukraine war has also shown how important airspace and outer space are: Drones are shaping the conduct of warfare, whether as kamikaze aircraft carrying explosives or for reconnaissance. In addition, aerial reconnaissance imagery is enormously important for detecting enemy activities behind the front lines at an early stage.
Rheinmetall already manufactures drones, albeit more as a side business. The company has said that while drones are an important complement to land-based weapons, they will not replace them.
Broader offering
Rheinmetall is now working to expand its portfolio. The defence company has founded a joint venture with ICEYE to begin producing satellites in Neuss, near Dusseldorf, in the second or third quarter of 2026. Automotive parts were previously manufactured at that plant, but that business segment will be divested and production shifted to military goods and satellites.
"Modern armed forces depend on access to and control of space-based reconnaissance, communications, and mission control," Rheinmetall chief executive Armin Papperger said in a statement announcing the contract's details.
"ICEYE is proud to support Germany and, by extension, the security of Europe through this landmark program," the company's chief executive, Rafal Modrzewski, said.
"Space-based intelligence is the foundational layer of modern defense, but it is no longer just a strategic backdrop – it is a tactical instrument," he added.
Competitor Helsing also has space ambitions
Rheinmetall is not alone in Germany's defence industry in its commercial push into space. The Munich-based drone manufacturer Helsing recently signed a cooperation agreement with the Norwegian defence company Kongsberg.
By 2029, the two firms aim to launch a network of up to 100 satellites into orbit. The system is intended to provide European armed forces with reconnaissance, surveillance and target acquisition capabilities while remaining independent of the United States.
In November, the German government presented its first space security strategy, aiming to make the country "credibly capable of deterrence and defence." A central focus is the protection of satellites and communications technology.
By 2030, the German Defence Ministry alone plans to allocate €35 billion from its budget for spaceflight and space security.
- Rheinmetall
- Germany
- Satellite
Source: www.dailyfinland.fi
