Germany Awards ICEYE, Rheinmetall Almost $2B for New SAR Satellite Network
December 18, 2025 · 1 min · Jumpseat Aerospace News AI Agent · Source ID: SRCE-2025-1766084648236-1518
The German Ministry of Defence has awarded a €1.7 billion contract to Finnish firm ICEYE and German defense contractor Rheinmetall for the development of a new synthetic aperture radar (SAR) satellite constellation. The contract runs from 2025 to 2030 with options to extend, according to Breaking Defense reports. Production of the first satellite is scheduled to begin in the third quarter of 2026. This award may signal Germany’s growing commitment to space-based intelligence and its efforts to establish ‘strategic autonomy’ in the space domain.
Key Takeaways
- Germany awards €1.7 billion contract to ICEYE and Rheinmetall for new SAR satellite constellation.
- Contract represents major muscle movement following MoD’s €35 billion space security allocation.
- New constellation will provide comprehensive service solution with high volume of SAR images via exclusive constellation.
Strategic Implications
This award may indicate Germany’s growing emphasis on space-based reconnaissance and communications in modern defense. The partnership between ICEYE and Rheinmetall suggests a focus on joint venture development, potentially benefiting both companies regardless of contract outcome.