Rheinmetall has started serial production of satellites in Neuss, with which the German arms company is expanding its activities into the space sector. Together with the Finnish company ICEYE, the company will produce around 50 satellites per year, and Rheinmetall owns 60% of the joint venture.
These are satellites with synthetic aperture radar, known as SAR. The technology allows for the monitoring of troop movements and military positions at night and in bad weather. Artificial intelligence is also used in image processing, writes tagesschau.de.
Contract for 1.7 billion euros
There are already 35 SAR satellites from ICEYE in orbit, whose images are used by the German armed forces and the Ukrainian army. The Bundeswehr has secured exclusive access to some of the new satellites through a multi-year contract with Rheinmetall and ICEYE worth EUR 1.7 billion. The agreement also includes an option to extend.
The first satellite manufactured in Neuss is due to be launched into orbit in early 2027 on a SpaceX rocket. The device is 3.3 meters long, 0.8 meters wide and weighs around 220 kilograms.
“The successful start of production in Neuss shows that we not only provide innovative space technologies, but can also develop them industrially in Germany“, said Rheinmetall CEO Armin Paperger.Surveillance for defense needs
“On a transparent battlefield, the enemy needs to be monitored as constantly and precisely as possible in order to quickly determine the movements of troops and heavy equipment“, said Juliana Süss of the Foundation for Science and Politics. According to her, the Bundeswehr has so far only had access to a limited number of SAR satellites, which is why the contract with Rheinmetall and ICEYE expands its defense capabilities.
Rheinmetall's space activities have also begun to develop in the United States. The company announced the successful launch of its first early warning satellite, built with Italy's Argotec. It was also launched into orbit on a SpaceX rocket and is designed to support air defense.
In the new sector, Rheinmetall will compete mainly with Airbus Defense and Space and Germany's OHB. The expansion into satellites is part of the group's strategy to offer a wide range of defense products, including artillery, tanks, ammunition, ships, aircraft components and drones.
Shares remain under pressure
The expansion of the business did not lead to a rise in Rheinmetall shares. Since mid-January, the shares have lost more than half of their value. On October 6, they were the worst performers on the DAX index, while Germany's leading index rose 0.7 percent to 25,436 points.