The U.S. Space Force announced on Friday that it has awarded satellite contracts totaling approximately $1.6 billion to Rocket Lab, based in Long Beach, and Northrop Grumman, located at the Space Park campus in Redondo Beach. These contracts, issued by the Space Development Agency, are designated for the construction of 18 satellites each, aimed at forming a network designed to provide early warnings against advanced threats, including hypersonic missiles.
Northrop Grumman, which has previously secured contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit, received a contract worth $764 million. With this agreement, Northrop Grumman is set to deliver a total of 150 satellites for the network.
In a significant milestone, Rocket Lab has now received its largest contract to date, valued at $805 million. Previously, the company was awarded a $515 million contract for the delivery of 18 communications satellites for this network. Originating in New Zealand and now established in Long Beach since 2020, Rocket Lab specializes in building satellites and providing small-satellite launch services using its Electron rocket and is also actively developing a larger rocket.
Rocket Lab’s founder and CEO, Peter Beck, expressed that this contract signifies a pivotal milestone in the company’s journey from being a trusted launch provider to emerging as a leading integrated space prime contractor. He noted that the company has the potential to earn up to $1 billion by supplying components to other manufacturers involved in the satellite network.
Additionally, contracts were awarded to a Lockheed Martin group situated in Sunnyvale, California, and L3Harris Technologies in Fort Wayne, Indiana, covering 36 satellites with a combined value approaching $2 billion. Lockheed Martin indicated that the projects would be coordinated between its facilities in California and Denver.
Gurpartap “GP” Sandhoo, the acting director of the Space Development Agency, stated that these contracts will ensure near-continuous global coverage for missile warning and tracking, along with other critical capabilities. Northrop Grumman emphasized that the satellites being developed are essential in response to the increasing threat posed by hypersonic missiles, which require advanced infrared tracking and rapid data transmission for the safety of U.S. troops.
The announcement positively impacted the stock market, with Rocket Lab’s shares rising nearly 18%, closing at $70.52, while Northrop Grumman shares increased by 1.6%, finishing at $568.46. This moment underscores the advancing trends in the space industry where companies are emerging as key players in defense and technology.