
Defense company invests in space technology and signs 1.7 billion euro contract with the Bundeswehr.
AI-generated summary
Rheinmetall is expanding its portfolio from classic armor such as tanks to space technology. SAR technology enables weather-independent reconnaissance.
Rheinmetall's young space business is gaining momentum. Today the arms company announced the start of series production of space satellites in Neuss. Together with the Finnish company ICEYE, around 50 SAR satellites are to be manufactured there every year. Rheinmetall holds 60 percent of the joint venture.
SAR stands for “Synthetic Aperture Radar”. The technology provides precise images of troop movements and positions even at night and in bad weather. Artificial intelligence is also used to prepare the data.
Billion dollar contract with the Bundeswehr
To date, there are already 35 ICEYE SAR satellites in space, whose images are also being purchased by the Bundeswehr and the Ukrainian army. The Bundeswehr has now secured exclusive access to some of the new satellites. The multi-year contract with Rheinmetall and ICEYE has a volume of 1.7 billion euros and an expansion option.
At the beginning of 2027, the first Neuss satellite will be launched into orbit using a SpaceX launch vehicle. The SAR satellites are 3.3 meters long and 0.8 meters wide and weigh around 220 kilograms. “The successful start of production in Neuss shows that we not only provide innovative space technology, but can also scale it industrially in Germany,” said Rheinmetall boss Armin Papperger.
Advancement for defense capability
From an expert perspective, SAR technology is now indispensable for modern armies. “In a glass battlefield, you have to keep an eye on the enemy as constantly and precisely as possible, also in order to find out about movements of troops and heavy equipment as quickly as possible,” said Juliana Süß from the Science and Politics Foundation (SWP). The Bundeswehr currently only has access to a few SAR satellites. The contract with Rheinmetall-ICEYE is therefore a step forward for defense capability, said the expert.
Last Friday, Rheinmetall reported the successful launch of its first satellite in the USA. The early warning satellite, built with the Italian Argotec, was also put into orbit with a SpaceX rocket and is intended for air defense.
Rheinmetall has an exceptionally broad base
With the space business now underway, Rheinmetall has opened a new business area. There the DAX group competes primarily with Airbus Defense and Space and OHB. The Bremen space company launched its first SAR satellite into space in 2007.
The German industry leader pursues the strategy of positioning itself as broadly as possible in the armaments sector and thus largely covering the needs of NATO armies. In addition to the classic business with artillery, tanks and ammunition, the product range now also includes ships, aircraft parts and drones. The arms company has entered into numerous European collaborations.
Stock weak in recent months
The Rheinmetall share has recently no longer been able to benefit from this strategic approach. The DAX stock has lost over half of its value since mid-January. Since the start of the Ukraine war in February 2022, defense stocks have been fundamentally revalued on the stock market. However, part of this reassessment has since been corrected.
DAX is rising
Even today, the Rheinmetall share is the weakest stock in the DAX. In contrast, a positive trend has prevailed on the overall market. By the early afternoon, the DAX had gained 0.7 percent to 25,436 points. The main driver is the ongoing AI rally. Yesterday the Nasdaq 100 reached a record high in New York.
AI outlook — possibilities, not facts
Launch of the first satellite manufactured in Neuss in early 2027.
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