Rheinmetall has received a major space-sector contract from the German Armed Forces, valued at approximately €1.7 billion (around A$2.8 billion), to deliver space-based reconnaissance capabilities through exclusive access to a synthetic aperture radar (SAR) satellite constellation.
The contract was awarded by the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) to Rheinmetall ICEYE Space Solutions, a joint venture between Rheinmetall and Finnish SAR satellite operator ICEYE. The agreement includes an extension option and will run from late 2025 through to the end of 2030.
Under the deal, Rheinmetall ICEYE Space Solutions will provide the Bundeswehr with a high volume of SAR imagery each day via a dedicated, sovereign satellite constellation. The service will include end-to-end operations, ground station management and AI-enabled image analysis. Ownership of the satellite constellation will remain with the joint venture.
The space-based reconnaissance capability will primarily support the protection of the German Armed Forces’ Lithuania Brigade and contribute to securing NATO’s eastern flank.
Rheinmetall ICEYE Space Solutions is headquartered in Neuss, Germany, where production of the first jointly developed SAR satellites is scheduled to begin in the third quarter of 2026. The project is designated within the Bundeswehr as “SAR Space System for Persistent Operational Tracking Stage 1”, known as SPOCK 1.
Rheinmetall CEO Armin Papperger said the contract reflected growing reliance on space-based capabilities in modern defence operations, noting that armed forces increasingly depend on sovereign access to reconnaissance, communications and mission control systems.
ICEYE CEO and co-founder Rafal Modrzewski said the agreement demonstrated a shift toward resilient satellite constellations capable of delivering persistent, actionable intelligence, describing space-based surveillance as a tactical capability rather than solely a strategic asset.
SAR satellites operate in low Earth orbit at approximately 500 to 600 kilometres and use radar rather than optical sensors to image the Earth’s surface. This allows them to collect imagery day and night and in all weather conditions, including through cloud cover, smoke and dust. The technology also enables frequent revisits and detection of subtle ground changes, with resolutions of up to 16 centimetres.
The SPOCK 1 program represents a significant step in Germany’s move toward sovereign military space intelligence and reflects broader European efforts to strengthen independent space-based defence capabilities.
