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Pentagon Agrees to SpaceX's 5x Starlink Price Hike

May 26, 2026

2 min read

Key Takeaways

SpaceX's Starlink price increased 5x for LUCAS drones.
Pentagon accepted $25,000/month per terminal.
LUCAS drone cost nearly doubled to $60,000+.
Pentagon considers 3,500+ additional Starshield subscriptions.

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Strategic Implications

This agreement may indicate the Pentagon's growing dependence on SpaceX for critical military communications infrastructure, which could raise concerns about single-vendor risk. The price hike suggests a significant increase in the cost of LUCAS drones, which could impact the Pentagon's procurement decisions and may set a precedent for future military Starlink contracts.

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What Happened

SpaceX Secures Higher Pricing for LUCAS War Drones in Iran

The Pentagon has agreed to pay SpaceX roughly five times more per Starlink terminal for connectivity powering LUCAS suicide drones in Iran, according to Pentagon documents reviewed by Reuters and two people familiar with the matter. The price increase, from $5,000 to $25,000 per month, nearly doubled the cost of each LUCAS drone, which was previously priced at around $35,000 per unit. The agreement comes as the Pentagon considers purchasing over 3,500 additional Starshield subscriptions, which would generate hundreds of millions of dollars in annual revenue for SpaceX. This development was first reported by MLQ.ai.

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