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Rheinmetall to expand its satellite business after Ukraine support deal
Rheinmetall, the German defense giant, and Finnish satellite company ICEYE signed a memorandum of understanding Thursday for the creation of a joint venture focused on satellite production.
The new company, called Rheinmetall ICEYE Space SolutionsThe deal represents a strategic step in Germany's expansion into the space domain, in a context of increasing rearmament at both national and European level. As agreed, Rheinmetall will hold a majority stake of 60%, while ICEYE will retain the remaining 40%.
The initial focus: Synthetic Aperture Radar (SAR) satellites
The joint venture will begin operations with a focus on the manufacture of SAR satellites, a technology that enables high-resolution imaging through clouds and in adverse weather conditions. ICEYE, recognized as a world leader in this field, will bring its expertise to strengthen Europe's strategic observation capabilities.
Production is scheduled to start in the second quarter of 2026, using Rheinmetall's Neuss plant in western Germany as the center of operations. This facility, formerly dedicated to the automotive industry, will be converted to meet the growing demand for space capabilities.
A key player in the Rheinmetall Space Cluster
This project is part of the Rheinmetall Space ClusterThe German Space Agency, an ambitious plan to consolidate Germany's position as a technological power in the field of space.
"With the establishment of the new joint venture, we are moving even further ahead in the space domain."said Armin Papperger, CEO of Rheinmetall AG. "In this way, we are not only responding to the growing demand for space-based reconnaissance capabilities, but also contributing to the strengthening of Germany as a center of technological innovation.".
Strategic partnership in support of Ukraine
The partnership between the two companies is not new. In November 2024, Rheinmetall and ICEYE signed a major contract, backed by the German government, to provide critical SAR satellite data to the Ukrainian Ministry of Defense.
This agreement extended ICEYE's collaboration with Kiev since 2022, providing strategic intelligence in the midst of the Russian military offensive, which has already spanned more than three years.
In addition, in 2024, Rheinmetall obtained exclusive rights to market SAR satellites to government and military users in Germany and Hungary, strengthening its position in a highly competitive market.
Industrial reconversion to meet defense demand
The creation of this new company also reflects Rheinmetall's strategy of converting part of its automotive manufacturing capacity into defense production.
"Our highly qualified colleagues at the Neuss site are getting a promising new perspective for the future."said Armin Papperger, stressing the importance of this transition at a time when Europe is seeking to reduce its technological dependence and strengthen its security in the face of today's geopolitical challenges.
With this initiative, Rheinmetall not only expands its presence in the space sector, but also positions itself as a key player in the defense of European technological sovereignty.
