Rheinmetall and ICEYE Secure €1.7bn Bundeswehr Contract for SAR Space Reconnaissance
Joint venture to deliver sovereign satellite-based intelligence supporting NATO operations and Germany’s Lithuania Brigade.
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Rheinmetall has secured a major contract in the space domain from the German Armed Forces, marking a significant step in sovereign European space-based reconnaissance capabilities. The Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) has commissioned Rheinmetall ICEYE Space Solutions to provide space-based intelligence through exclusive access to a synthetic aperture radar (SAR) satellite constellation.
To deliver the programme, Rheinmetall has partnered with ICEYE, the world’s leading manufacturer and operator of SAR satellites, forming the joint venture Rheinmetall ICEYE Space Solutions, headquartered in Neuss, Germany. The company will supply high-volume SAR imagery as a fully managed service, including satellite operations, ground station management and AI-supported image analysis. The satellite constellation will remain under the ownership of the joint venture.
The contract is valued at approximately €1.7 billion (gross) and includes an option for extension. The SAR-based reconnaissance capability will primarily support the protection of the German Armed Forces’ Lithuania Brigade and contribute to securing NATO’s eastern flank.
“Modern armed forces depend on reliable access to space-based reconnaissance, communications and mission control,” said Armin Papperger, CEO of Rheinmetall AG. “This contract underlines the Bundeswehr’s confidence in Rheinmetall’s digital and space-technology expertise and our commitment to strengthening European defence capabilities together with our partners.”
Rafal Modrzewski, CEO and co-founder of ICEYE, added: “Space-based intelligence has become a tactical instrument, not just a strategic asset. This agreement demonstrates the shift from vulnerable single systems to resilient satellite constellations delivering actionable intelligence when it matters most. It marks ICEYE’s evolution into a provider of mission-critical defence capabilities.”
The contract runs from late 2025 through 2030, with options to extend. Rheinmetall ICEYE Space Solutions will deliver a very high number of SAR images per day using its own sovereign constellation. Production of the first jointly developed SAR satellites is scheduled to begin in Q3 2026 at the Neuss facility.
Within the Bundeswehr, the programme is designated “SAR Space System for Persistent Operational Tracking – Stage 1 (SPOCK 1)”. Operating from altitudes of 500–600 km, SAR satellites emit radar signals toward the Earth’s surface and process the reflected pulses to generate high-resolution imagery. Unlike optical satellites, SAR systems operate independently of daylight and weather conditions, enabling continuous surveillance through clouds, smoke, rain or sandstorms, with resolutions of up to 16 cm.
This capability allows for persistent monitoring of rapidly changing operational environments, reinforcing Germany’s and NATO’s situational awareness and defence readiness.
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